Bussiness Planning

Background: Our client, a multi-site organization operating within a complex, multi-ERP environment, faced significant challenges in its supply chain planning processes. These challenges resulted in high inventory carrying costs, production inefficiencies, and lost sales productivity due to time-consuming forecasting activities. Recognizing our client’s need for a transformative solution, JGG leveraging our deep expertise in supply chain optimization, data analytics, and custom technology development to partner with them on this journey.

Challenges:

1. Complex Multi-ERP Environment
   • Managing data across multiple ERP systems complicates planning and execution.
   • Requires significant data translation to enable seamless operations.

1. Inadequate Tools for Enterprise-Level Planning

1. • Absence of critical tools to support global demand, supply planning, and production optimization.
   • Over-reliance on disparate systems leads to inefficiencies.

1. High Cost and Delayed Timeline of Off-the-Shelf (OTS) Software

1. • Customization requirements for OTS software are expensive and time-consuming.
   • Implementation could take several months longer, which is infeasible in the current environment.

1. Resource Constraints

1. • Need for skilled professionals to design, implement, and manage advanced planning systems.
   • Dependence on consultants for expertise in transformation projects.

1. High Inventory and Operational Costs

1. • Over $90M in inventory, leading to substantial carrying costs.
   • Inefficiencies in routing and production planning contribute to idle time and suboptimal overhead absorption.

1. Unclear Organizational Structure and Roles

1. • Lack of defined roles and KPIs to support an advanced planning function.
   • Misalignment between local, regional, and global planning capabilities.

Proposed Solutions:

1. Custom Desktop Tools
   • Design and implement custom tools tailored to Thrive’s multi-ERP environment.
   • Avoid cloud hosting (e.g., Azure) to reduce costs by $100,000.
   • Tools include demand planning, supply planning, and scenario modeling capabilities.

1. Process Redesign

1. • Develop comprehensive process playbooks for demand planning, supply planning, and S&OP.
   • Map new processes to enable seamless execution across different planning levels.

1. Cost Reduction Initiatives

1. • Leverage offshore resources to reduce costs by $43,000.
   • Reduce travel expenses by $55,000.
   • Offer discounts to bring down the total project cost.

1. Collaborative and Scalable Approach

1. • Engage SMEs to design solutions collaboratively, ensuring buy-in from all stakeholders.
   • Execute pilots and onboard teams with comprehensive training.

1. Enhanced Planning Organization

1. • Establish new roles like Global SCM Group, Regional Production Planners, and Local Schedulers.
   • Align KPIs and responsibilities to support a dynamic planning function.

1. Implementation Phases

1. • Three-phase approach: Analysis & Design, Construction, Implementation.
   • Timeline spans seven months with clear deliverables at each stage.