Achieving Cost Savings through Superior Materials Resource Planning
A global technology company went to Catalant's network for the expertise to improve its demand-supply planning processes.
A leading computer technology company was facing challenges in planning for material requirements with long lead times. Excessive discrepancies between planned and actual material values were leading to either stock-outs or overstocking, creating significant cost for the client.
The project required knowledge of the Hyperion toolset used for internal reporting and an understanding of the fundamentals of demand-supply planning from Master Production Scheduling to Materials Resource Planning. Andrew is a joint CPA/MBA with extensive experience in both quantitative Excel analysis and Hyperion.
Andrew’s specific experience as an enterprise-level Hyperion Administrator combined with his consulting background allowed him to quickly dive in and begin to make meaning from the client’s massive part volume data sets.
The client wanted a reporting tool to identify excessive changes in material resource plans. Andrew developed the tool in Excel with access to the client’s Hyperion database via the Essbase add-in, and included planned and actual volumes for 100 distinct parts. After an initial collaboration on-site, Andrew worked remotely to refine the reporting tool and provide ongoing weekly outputs. Andrew returned to site for an interim review of the tool, and again to train internal users on the final solution.
"Andrew did an excellent job, to the point that we have asked him to extend his contract for two months while our IT team replicates his reporting within our standard reporting tools.”
After piloting the tool, the client extended Andrew’s engagement to build out the tool’s capacity to analyze forecast accuracy for 4,000 parts. Andrew’s tool and the governance process he developed around it were introduced to a wider group with the aim of further embedding traceability across the planning group globally.
The implementation of the tool will optimize requirements ordering, thereby reducing stockouts and managing inventory levels across the business. The supporting governance process will increase visibility into resource plans, thus fostering trust between multi-stakeholder groups involved in planning. An in-control planning process will also help improve credibility of orders to suppliers, who may in turn be willing to lower supply prices.
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