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Business Challenge
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Guardian Automotive is one of the few companies in the world that manufactures glass as well as injected plastic products (TRIM) for cars. In Spain, they have a plant for windshields, a plant for plastic injection and special coatings for cars, two national networks to repair/replace windshields in cars and a complete network of warehouses for the distribution and commercialization of its products.
Production planning and procurement are based on forecast and different tools. These are completed in a very unstable and dynamic environment, among other things, given the exponential growth of finished product with a short market life. This causes a bigger risk of obsolescence. There is also great variability in procuring excellent raw materials from suppliers with long lead times. The production process requires excellent quality, and for that reason they work with elevated production lots.
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Solution
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The key was to quickly adapt to changes in the market; eliminating the forecasts and planning with buffers for the finished product that will adjust daily to the demand variability. They also created lots based on sales to minimize risk of obsolescence as well as adding buffers for the raw materials, that filter the high variability in the procurement of such and stabilize the production process.
This resulted in a standardized planning process in every level of the supply chain with only one integrated tool: Replenishment +. As a result of integrating Demand Driven Material Requirements Planning, there will be better customer service, and they are able to offer more attractive terms service to the market.
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This implementation was supported by
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