Lightspeed

Business Challenge

Established in 1990, Lightspeed is a leading provider in classroom audio technology to learning environments around the world. Their passion is to improve the listening and learning environment for every child.

Lightspeed realized that in order to make a difference in the classroom, they had to make a difference in themselves. They were burdened with numerous inventory challenges to serve their customers and manage cash flow. Their issues included:

  • Maintaining high customer service levels while aligning materials to true market demand
  • Planning materials based on inaccurate and changing forecasts
  • Relying on spreadsheet-based MRP tool for planning material requirements
  • Improving visibility across the supply chain

Solution

Lightspeed recognized that Demand Driven MRP (DDMRP) methodologies would address their critical supply chain issues. The company implemented NetSuite and Replenishment+ from Demand Driven Technologies. The solution provided them with clear visible signals based on actual demand (not forecast) to drive supply planning and material acquisition, ensuring materials are always available.

The powerful DDMRP buffers embedded in the solution are resilient and assure availability while dynamically adjusting to changing demand patterns and generating more frequent ordering in smaller volumes of long lead time items. Therefore, minimum order quantities are maintained. They now have an inbound pipeline of materials which ensure stock availability. This enables lower on hand balances as fresh supplies now arrive in frequent intervals.

Overall, after implementing Replenishment+, their supply chain as a whole became more effective. The improved end-to-end visibility  granted them better handling of long lead time products, and faster responses to trends and product introductions.

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