Haceb, a leading Colombian producer of kitchen appliances, experienced significant impact on cash flow and improved visibility across its supply chain after implementing Replenishment+®. Overall, Haceb experienced bigger sales, better service levels, less inventory and lower expenses.
Identifying a solution to overcome inefficiencies within the supply chain
Haceb is a leading Colombian producer of kitchen appliances and a whirlpool strategic partner in Colombia. Before identifying the right partner to implement an inventory management software, the company was experiencing strong performance. It had made strategic and tactical improvements, yet inefficiencies in its global supply chain continued to exist. Haceb recognized the need to radically transform its operational model in order to improve and address several challenges across three areas: supply chain planning, inventory management, and information for making decisions
Challenges were numerous and included:
- High inventory levels to protect service levels
- Excess working capital
- Long business operating cycle
- Poor service levels
- High rate of lost sales
- Increasing logistics expenses
To order to achieve system improvements, Haceb needed to implement an inventory management model along the entire supply chain using Demand Driven Material Requirements Planning (DDMRP), an innovative multi-echelon pull methodology.
The solution would:
- Align materials to actual market requirements. Tools like Planner Workbench would offer its planners an intuitive view of all critical planning priorities.
- Execution Alert would highlight inventory and expedites priorities.
- Decoupling the Bill of Materials would enable planners to easily see and manage order generation, priorities and order sourcing.
After implementing Demand Driven Technologies’ Replenishment+® the company experienced improved visibility across the supply chain and overall dramatic results. Overall, Haceb experienced bigger sales, better service levels, less inventory and lower expenses.