G-BEC helps Palliser forecast/plan their leather procurement
Business Problem/Opportunity:
Palliser’s Upholstery division has a large variety
of products using numerous leather items in different grades and colors.
Planning of the leather procurement has been always a challenge. In spite
of the consistent high inventory levels, there were still frequent stock-outs
for these items. This resulted in high inventory costs, low turns and
interrupted production due to leather unavailability.
Solution:
G-BEC converted the requirements for a leather forecasting
and planning system (created by the upholstery general manager) into a
solution utilizing primarily Palliser’s Material Requirements Planning
(MRP) module of their ERP system MAPICS. Gabra then worked with Palliser’s
business analysts and users to implement the proposed solution.
The implemented solution involved creating a
new forecasting system for the leather items
in addition to the use of MAPICS MRP for planning
these items’ procurement. The developed forecasting
system uses 5 month history corrected by seasonality
and trends factors and creates 5 month future
demand to feed MRP.
G-BEC was involved mainly in Project Management
capacity but also helped in the Application Development.
Result:
The implemented systems eliminated the stock-outs
due to procurement planning and increased significantly the inventory
turns and hence reduced the inventory cost. Further, it simplified
the planning process for leather procurement.
