Background:

A mid-market private label juice manufacturer with facilities across the United States was investigating the opportunity to implement a new Demand Planning process. The client had experienced key personnel changes over a period of time which led to the deterioration of the forecasting process ultimately reaching a point where the forecast was being updated sporadically. The client asked PPT to help determine the requirements for the implementation of a new forecasting process focusing on people, process and technology perspectives.

Goals:

• Would existing technology tools provide adequate support for a re-defined and rejuvenated forecasting process?
• What organizational changes and requirements would be required for a more effective forecasting process?
• What data would a new forecasting process require (i.e., inputs and outputs)?

Accomplishments / Benefits:

• The existing technology was more than adequate to support the requirements of a new forecasting process.
• The organization would require a dedicated and focused resource to manage the forecasting process including regular updates.
• Forecasting process changes would required the assignment of A/B/C classifications to all products to better manage the large number of SKUs.
• The new forecasting process could reduce Finished Goods Inventory by 15-20%.