Forecasting & Inventory Management

Increasing the forecast accuracy to be able to improve the supply chain performance

Cedo, founded in 1965, supplies consumer household cleaning products under their customers retailer brands. Production takes place in three manufacturing sites across the globe work. Cedo operators also Europe’s largest plastic film recycling centre in Geleen, as they are experts in recycling post consumer waste (PCR) into refuse sacks and indoor bin liners.

Although Cedo started implementation of a forecasting tool in 2021, the forecast accuracy is not yet on the desired level. Cedo has asked Involvation to do an analysis on both the forecasting process and tooling. Based on the analysis a set of recommendations is defined in order to improve the forecast. Involvation will be guiding in the implementation of the recommendations as well.

Meet the demand for Reusable Transport Items (RTIs) during the seasonal peak

In order to meet the demand for reusable transport items (RTIs) all year round – and especially during the seasonal peak in the spring – Container Centralen (CC) is keen to gain more accurate visibility into both the predicted demand for RTIs and the supply side.

Involvation is helping CC selecting and implementing the tooling for this within its existing IT landscape. The demand planning is currently being set up in Salesforce and an S&OP tool is being developed in Excel as an interim solution. The plan is to subsequently implement this tool in a suitable IT package.

Container Centralen (CC) is a provider of RTIs used for the distribution of flowers and plants in Europe. CC supplies standardized roll containers to its customers whenever and wherever they need them. In addition, CC offers a comprehensive package of logistics services in support of its products. CC has a network of approximately 65 depots across Europe.

Insight into foam availability, planning and forecasting at Recticel

Recticel is an international company focused on making an essential difference in everyone’s daily experience of comfort. The core product portfolio is based around three main business lines: flexible foams, insulation and bedding. Recticel is keen to create added value and achieve stable, profitable growth for all its customers and shareholders in an efficient, sustainable and balanced way. Involvation is helping Recticel to gain better visibility of the availability of foam at its production facility in the Dutch town of Kesteren, where it makes mattresses and toppers.

Foam produced in Kesteren is either sold directly to customers or used in Recticel’s own on-site mattress and topper production activities. It is important for the company to have the right amount of foam available at the right time, not only to supply customers’ orders on time but also to keep its own mattress and topper manufacturing activities running efficiently. It is difficult to obtain an accurate and reliable overview of how much foam is available because the data comes from several different systems and sources.

As Involvation, we are creating a tool in Power BI to make it easier for Recticel’s facility in Kesteren to gain insight into the availability of the various types of foam. Additionally, we are helping the company to improve its planning and forecasting to further optimize the alignment of all the processes.

Improving visibility of goods flows for the Dutch National Consortium for Medical Aids (LCH)

The coronavirus pandemic has increased the demand for medical aids and personal protective equipment for use in caring for coronavirus sufferers. To avoid each individual healthcare institution having to struggle to buy such resources in the international market, the Dutch Ministry of Health, Welfare and Sport worked with a team of professionals from hospitals, academic centres, suppliers and producers to set up a joint initiative, called the ‘Landelijk Consortium Hulpmiddelen (LCH)’ [Dutch National Consortium for Medical Aids]. The aim of this consortium is to purchase medical aids and equipment in the national interest, both jointly and on a non-profit basis.

Involvation was asked by LCH to analyse whether the planned flow of goods would be sufficient to meet the expected demand. Involvation started by assessing the supply of materials produced in the Netherlands and of those purchased in Asia/the rest of Europe. In addition, Involvation helped to determine the needs of the various institutions (hospitals, nursing homes, general practitioners, physiotherapists, etc.). The resulting data is now being used as input for reporting to the Ministry of Health, Welfare and Sport.

Professionalization of European demand planning at Burg

Burg Group is the world’s most sustainable manufacturer of natural vinegar and tasty syrups. The company inspires and supports its customers with its wide range of products combined with its specialist knowledge. Burg has been offering quality, flavour and convenience to retail organizations, food manufacturers and consumers for over 70 years, including as high-quality private label concepts.

Efficiency and effectiveness of the entire value chain is a key driver of value for Burg. In line with this, the company recently launched a new initiative to professionalize the demand planning process as an important pillar of its European Sales and Operations Planning (S&OP) process.

Burg has asked Involvation for help with taking the demand planning process to the next level. This will entail working with a multidisciplinary team consisting of representatives from Sales, Planning, Finance and Supply Chain to develop and implement an improved way of working and requirements for new tooling.

Stryker improves ATP proces

Stryker is one of the world’s leading medical technology companies and is active in over 100 countries. The company offers a diverse array of innovative products and services in Orthopaedics, Medical and Surgical, and Neuro technology and Spine. Stryker operates 41 factories, sells approx. 128.000 different products and realised net revenues of approx. $15bn in 2019.

Demands on product availability and customer service levels are very high and Stryker is generally able to meet these. On top of this, the company wants to improve its ATP process in order to guarantee reliable and up-to-date information about any open or past due orders. Stryker has asked Involvation to support the implementation of the new ATP process across a number of business units.

FrieslandCampina Foodservice starts to reduce inventory

FrieslandCampina Foodservice, part of FrieslandCampina Consumer Dairy, produces and supplies a broad portfolio of ingredients and semi-finished products for the B2B market.
The company has set itself the target of reducing its inventory by 18% without compromising on its high service level, and has asked Involvation to help it accomplish this goal. The two companies have agreed on a pilot aimed at structurally reducing stock and at planning the roll-out to the other lines and plants within a global supply chain.

HAK facilitates rapid growth and innovation

Vegetable processing company HAK has enjoyed strong growth in recent years. It has extended its classic range of vegetables in glass jars with products in stand-up pouches, which it has been producing in-house since 2018. Not only are the volumes increasingly rapidly but, partly due to an innovation-focused strategy, so too is the complexity.

To ensure that the Supply Chain department can keep pace with the expected rise in product complexity, HAK has enlisted Involvation’s help in further structuring the supply chain management organization and processes, including forecast and inventory management.

Rexel improves supply chain and optimizes inventory management

Rexel Nederland B.V. is part of the Rexel Group, a global leader in the distribution of electrotechnical products and infrastructure for renewable energy. A flexible and reliable supply chain is indispensable in that industry, which is why Rexel is continually working to further improve its supply chain. Rexel recently asked Involvation for help with defining and implementing the next steps in this continuous improvement process. The first steps will be to optimize inventory management transportation management and differentiated service strategy and associated logistical services.

SIG reduces its European inventory levels

SIG Air Handling develops, manufactures and markets state-of-the-art air handling systems through 100 sales locations in 12 different countries. The portfolio consists of 15,000 different products, which are partly distributed directly and partly assembled to customer specifications. The company is part of SIG plc, a leading supplier in air technology, interior finishing, façades and insulation.

SIG Air Handling targets to structurally reduce its European inventory levels by 10-20%, by optimising the planning processes, adapting the supply chain organisation where necessary, run a training program to improve planning skills and investigate whether the planning tools need to be upgraded. The company has asked Involvation to support her with this extensive program.

Smarter inventory management at Medeco

Medeco is a leading supplier of consumables and equipment and related disposables in healthcare.

Product availability is of course of great importance to Medeco. At the same time it is essential to control her inventory and costs. Now Medeco is ready to make a next step in professionalising its inventory management. For selected suppliers Medeco will review current arrangements and processes to find smarter ways to ensure availability. Medeco has asked Involvation for support in this.

Canon optimises inventory levels

Canon is a Japan based multinational with three business units in Europe: Consumer Imaging Group (CIG), Business Imaging Group (BIG) and the Production Printing Group (PPG, former Océ). Improving inventory management to reduce the working capital is high on the agenda for Canon.

Involvation was involved in supporting the development of the European Demand and Supply Management (EDSM) organization. EDSM is responsible of all inventories within the EMEA region. Begin 2016 Involvation carried out a pilot within EDSM to assess impact of inventory parameter optimization. Canon has now asked Involvation to support the further structural reduction of inventory. After a strategic evaluation, required to ensure alignment with the commercial objectives, Involvation supports the planners with improved processes, tools and information.

Using knowledge of farmers to forecast milk supply

DOC Kaas is a Dutch Cheese company. The cooperative – established in 1895 and located in Hoogeveen (NL) – produces yearly more than 130.000 tonnes Dutch cheese, which are sold world wide. The main component of these cheese, the 1 billion litres of milk, is provided by the members of the cooperative: the dairy farmers who at the same time are the share holders of the cooperative.

Since April 1st of 2015 the European milk regulations are eliminated. The expectations for future milk production is that there will be more volatility in produced volume, depending on market prices. To be able to anticipate on the variation in milk supply to the production site, it is vital to have an accurate forecast of the supply.

Supported by Involvation DOC Kaas has implemented a forecasting system for the milk supply. Based on extrapolation of information provided by a selected group of farmers a weekly forecast of the next months is made. Involvation provided the calculation tools and supported DOC Kaas with the selection and instruction of the farmers.

Shimano improves supply chain management

Shimano is a leading worldwide supplier of captivating products and services for the cycling, fishing and rowing industry. Shimano has a very wide and successful distribution network across Europe in order to sell and service towards independent distributors, agents, OEM’s, whole sellers, dealers and even consumers. The mission of Shimano Europe is to be an excellent supplier and a valuable partner for all their customers throughout all distribution channels in the European cycling, fishing and rowing industry, to create consumer demand for Shimano & Shimano owned products, as well as to be the “Eyes, ears and mouth” of the global Team Shimano as representative in Europe.

Shimano Europe has asked Involvation to support them in further improving their supply chain. The objective is to achieve an even better product availability while at the same time realizing better inventory turns. Several integral projects are set up to take the planning and control processes to the next level.

Improving inventory management

After conquering the concrete sector, the Irish multinational CRH (approx. 20 billion euro turnover) is now focusing on sanitary- and heating wholesale. Over the past years this has resulted in takeovers of Schrauwen, Lambrechts and Sax in Belgium and Paulsen in Germany. After successfully assisting the company in Belgium, CRH has now asked Involvation to further professionalize the inventory management in Germany as well.

Statistical forecasting

FrieslandCampina Domo develops, produces and sells high grade diary ingredients on a global scale. These ingredients can be used for child nourishment, medical nourishment, cell nourishment and sports nourishment. FrieslandCampina Domo asked Involvation to assist the design and implementation of statistical forecasting.

Optimisation replenishment

Aldipress is the market leader when it comes to trademarking and distributing magazines, comics, novels and puzzles for separate sales. Aldipress has approached Involvation to do an audit on their current replenishment methodology and to improve the current methodology.

SCA integrally optimises production and inventory

Having already significantly reduced its stock levels, SCA decided to work with Involvation to explore further opportunities. The task was to look at integrally minimising inventory and changeover costs. This was not a unique task as such, but the particular circumstances within the company meant that it was a more complex puzzle.

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Improvement planning process

Holmatro develops, produces and sells hydrolic tools as well as systems for firefighters and emergency services, industrial applications and yachts. Holmatro asked Involvation for support in the further increase of its service level. By doing a Quick Scan more insight is gained in the dynamics of the forecast- and inventory management process of Holmatro. Based on this a program has been started to realize the identified improvement points.

Promotion forecasting

With 400 supermarkets, C1000 is the second largest supermarket chain in The Netherlands. The C1000 headquarters in Amersfoort supports the entrepeneurs in their daily business affairs. In order to assist the C1000 managers in their weekly order process for promotion goods, C1000 will share customized order recommendations with each individual shop. Involvation was asked to expand the promotion forecasting tool that they built for C1000, to also generate shop specific order recommendations.

Less inventory, better service level

Technische Unie is one of the largest technical installation material wholesalers in The Netherlands. From two central distribution centers and 35 service centers, over 90.000 items are delivered from stock to its customers within a day. Technische Unie has asked Involvation to investigate what the possibilities are to offer its customers a better service level, whilst reducing inventory. To achieve this Involvation performs both a qualitative as well as a quantitative investigation. Especially the possibility to differentiate more in the inventory levels of slow movers will be investigated.

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Inventory management training

A training-on-the-job project to enhance theoretical knowledge and to implement this knowledge directly into Coolmark’s business.

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It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change
Charles Darwin