DS Magazine

VOLUME 10 / ISSUE 1 / 2010

Profits
Find out how Gloria Jeans Coffees reduced regional inventory by 60% Page 6

Wake Up and Smell the

OPENING Letter

W
One

e are all measured by the company we keep. Fortunately for Demand

products. On a quick coffee break, I stepped into Gloria Jeans Coffees. The business dominates the Australian and Southeast Asian coffee shop scenes and after sipping on one of their steamy beverages one afternoon, I realized why they offer high-quality products and world-class customer service. Funny enough, that is exactly what Gloria Jeans Coffees says about Demand Solutions (page 6)! Just yesterday at a local grocery store, I walked past a Monster Energy drink display and couldnt help but remember four years ago when Hansen Natural, maker of the Monster Energy brand, was just beginning to introduce this exciting new product. The company looked to Demand Solutions to manage the Monster growth (pun intended) and the brand has continued to grow exponentially (page 18). All of our customers have one quality in common an effective supply chain management strategy. For nearly a quarter of a century, Demand Solutions has been committed to driving profitability for small and midsized enterprises through effective demand and inventory planning. Offering customers specific solutions to their specific problems is our goal. Whether its preparing for growth, combating poor customer service levels, excess inventory, or managing production scheduling, thousands of businesses (many with products that you see and use every day) rely on us. By helping our customers solve their specific business problems, we enjoy a broad and loyal customer base. If Demand Solutions is measured by the company we keep, we have our customers to thank for making us look so good. Sincerely,

Solutions, we have had the pleasure of being surrounded by some of the worlds greatest businesses for the past 24 years. While you may not know the official names of these businesses, you surely know their brands and products. of Demand Solutions customers Darden Restaurants, for example, owns Red Lobster, Olive Garden, Longhorn Steakhouse, among others. Hair care lines Blondie and Quantam are both brands of another

If Demand Solutions is measured by the company we keep, we have our customers to thank for making us look so good.
Demand Solutions customer Zotos International. Additionally, R. Torre & Company makes Torani flavored syrups used in most coffee shops, and Reckitt Benckiser manufactures Frenchs mustard and Woolite. No matter where I go across the ocean or two miles from my home I am reminded that Demand Solutions is in good company. While attending our Australia customer conference recently, not only was I literally surrounded by customers, but every time I ventured away from the conference I saw their

Bill Harrison President

2 demandsolutions.com

TABLE of Contents

Editor: Amanda Conner / 2010

4 5

DS News New Product

Demand Solutions Advanced Planning & Scheduling

Gloria Jeans Coffees

The Australian coffee retailer brews a global forecast with Demand Solutions and expands its franchise business into additional markets worldwide. The socially-conscious company uses Forecast Management and Requirements Planning to filter out supply chain complexities such as long lead times, product seasonality and new product introductions. Extra large profits, coming right up!

10

Paper Island

Replenishing inventory to more than 700 retail customers has never been easier for Paper Island with Demand Solutions Retail Planning. The greeting card and giftware manufacturer was not only able to increase sales by 30 percent, but also win the Managing Automation 2009 Progressive Manufacturing 100 Award for its auto-replenishment project with Demand Solutions.

12

Rafaella Apparel Group

The womens clothing designer eliminated more than USD $14 million in excess inventory after implementing Demand Solutions in 2006. Today the companys well-heeled demand planning process allows it to confront current economic challenges with style.

14

Woodcraft Supply

Supply chain inefficiencies are no longer chiseling away at the woodworking tool distributors bottom line. With the help of Demand Solutions, the company has been able to maintain the highest customer service levels in the industry despite ever-increasing lead times.

16

Next day deliveryguaranteed. Learn how Demand Solutions helped the catering equipment distributor gain control of its complex supply chain and deliver this challenging brand promise to its customers.

Nisbets

18

The manufacturer of Monster Energy drinks has unleashed one mean supply chain planning process with Demand Solutions. After tackling inventory management costs and energizing its inefficient production schedule, the company has almost doubled revenues in just two years.

Hansen Natural

20

The health and beauty manufacturer gets a supply chain management makeover! Demand Solutions demand planning software has smoothed out inventory planning wrinkles and increased forecast accuracy to more than 85 percent.

Murad

22

For nearly a quarter of a century, Demand Solutions has empowered the lawn and garden tool manufacturer to dig deeper into its supply and demand streams. The company continues to rely on the software to confront modern challenges and has recently reduced inventory by an additional 15-20 percent.

Seymour Manufacturing

DS Magazine

DS News

DS News
Awards
Supply & Demand Chain Executive magazine recognized Demand Solutions president, Bill Harrison, as one of its 2009 Provider Pros to Know.

New Offices
Demand Solutions has added offices in India and Singapore along with seven new offices throughout the United States and Canada.
Fulvio Lana Asia Level 42, Suntec Tower Three 8 Temasek Boulevard Singapore 038988 Tel: (65) 6829 2125 flana@demandsolutions.com Prasanth Atluri India 8-2-120/76, Plot # 89, 3rd Floor Road # 2, Banjara Hills Hyderabad-500 034, India Tel: (91) 40 23553244 patluri@demandsolutions.com

For the second year in a row, Supply & Demand Chain Executive magazine awarded Demand Solutions the Supply & Demand Chain Executive 100.

Demand Solutions received the customer-nominated 100 Great Supply Chain Partners for 2009 award by SupplyChainBrain.

Partner Update

Consumer Goods Technology selected Demand Solutions as a Readers Choice Award winner in the Editors Pick category.

Microsoft: Demand Solutions has attained Gold Certified Partner status in the Microsoft Partner Program with a competency in ISV/ Software Solutions.

Managing Automation selected Demand Solutions customers, SKF USA and Paper Island, as winners of the Progressive Manufacturing 100 (PM 100) Award for their innovative projects with Demand Solutions.

Microsoft Dynamics: Demand Solutions supply chain management software is now certified for Microsoft Dynamics. This accreditation signifies that the solution has met Microsofts highest standard for partner-developed software. ePartners: Demand Solutions has formed a partnership with ePartners, a leading business and technology consultancy and Microsoft Gold Partner. Together, ePartners and Demand Solutions offer consulting and implementation services combined with the worlds most widely used supply chain planning solutions for the mid-market.

Managing Automation also acknowledged Demand Solutions as a notable Technology Partner for empowering SKF USA and Paper Islands inventory planning.

4 demandsolutions.com

New Product
Advanced Planning & Scheduling

Heres Our Delivery Date:

TODAY.
delivery date be TODAY.

Now Lets Work on Yours.

ODAY, your manufacturing plant received an order for 450 items. The customer needed those items YESTERDAY. With Demand Solutions Advanced Planning & Scheduling, you can schedule production operations accordingly and make your

Robust functionality yields robust benefits

Demand Solutions Advanced Planning & Scheduling enables the following processes:
Material Planning Finite Planning Capacity Planning Shop Floor Scheduling

Demand Solutions has recently unveiled its latest addition to the Demand Solutions software suite Advanced Planning & Scheduling (DS APS). Demand Solutions Advanced Planning & Scheduling offers comprehensive manufacturing planning and scheduling capabilities through a powerful and easy-to-use solution. This efficient production planning tool quickly produces accurate schedules taking machines, personnel, tooling and inventory constraints into account. With the new Demand Solutions Advanced Planning & Scheduling, manufacturers are empowered to make informed decisions to meet customer demand on-time at the lowest costs. With an intuitive, easy-to-use user interface built on the Microsoft.Net architecture, Advanced Planning & Scheduling has a wide range of features to help planners gain a 360-degree view of their companys planning and production status. Top features include: isual Scheduling: Quickly identifies bottleneck operations and allows users to move V orders around easily while accounting for constraints owerful Optimization Engine: Enables planners to schedule based on goals and P production requirements through optimization rules ulti-User and Multi-Plant Collaboration: Users are able to work collaboratively with M other planners and manage several schedules simultaneously hat-If Impact Analysis: This scenario-planning functionality allows users to predict W outcomes quickly and make informed decisions based on real and experimental schedules eal-Time Schedules: Provides planners with the most up-to-date information enabling R them to adjust production plans immediately ales & Operations Planning: Identifies potential inventory backlogs and shortages to S avoid lost sales

By enabling these processes, manufacturers are able to capitalize on the following improvements:
Reduced production cycle times Improved machine utilization Reduced inventories Increased on-time deliveries educed cash-to-cash and R order-to-cash cycle times Reduced customer stock-outs

Reliable, Accurate and Easy-to-Use

With Demand Solutions Advanced Planning & Scheduling, manufacturers can deliver what they promised, when they promised it without a warehouse full of safety stock. The software allows organizations to cut costs by reducing inventory, labor costs and shipping expenses. This advanced production planning tool is perfect for small and midsized enterprises it is affordable, easy-to-use and yields fast return on investment.

DS Magazine 5 DS Magazine 5

COVER STORY

Coffee Competition is Brewing

erving seven million coffees per month in Australia alone, Gloria Jeans Coffees is known for its cozy atmosphere, friendly baristas and Demand Solutions because I had used it with great success at a previous company. I knew that it would be capable of handling inventory in multiple global locations for the Gloria Jeans Coffees Master Franchise Partner network. With more than 600 items in its inventory ranging from bags of whole bean coffee to plastic lids, 120to 140-day lead times were threatening to limit the companys rate of growth in many countries. Several factors contributed to the lengthy lead times including inaccuracies within the Excel spreadsheets, the companys historical use of Australian-only suppliers and shipping product to the international Master Franchise Partner locations directly from Australia. Although the Australian-owned, socially-conscious coffee retailer enjoyed supporting local businesses (489 of its retail stores are based in Australia), the lead times were restricting marketing campaigns and contributing to lower sales across the international network because of lost opportunities. With the help of its new demand forecasting and inventory management systems, Gloria Jeans Coffees has added international suppliers and implemented several global warehouses that replenish inventory directly to the franchises. Helen Wheeler, supply planning manager, creates a forecast in Demand Solutions and compares it to the forecasts from each franchise location to determine the replenishment for its current warehouses in Sydney, Dubai and Rotterdam. The company plans to implement more central warehouse locations in Southeast Asia, India and Central/South America as its network continues to grow. Demand Solutions has reduced our estimated inventory by 60 percent in Europe and the Middle East, says Wheeler. More importantly, we have reduced our order lead times from three months down to 10 to 20 days. We have seen an increase in new outlet agreements, sales and profits as a result of our use of Demand Solutions.

high-quality coffee. With currently more than 900 outlets in 36 countries, the leading coffee retailer struggled to manage its expanding global supply chain with a rudimentary, Excel-based planning process. The companys main business problems of managing long lead times, product seasonality and new product introductions were becoming risks that the thriving franchise organization did not want to endure. To increase visibility into its expanding global

business, Gloria Jeans Coffees implemented Demand Solutions supply and demand planning software in 2007. The company worked with the Demand Solutions Australia office to implement Forecast Management and Requirements Planning at company headquarters in Sydney in July 2007 for management of the Australian distribution network. The subsequent roll out to Rotterdam for the European network occurred in October. The systems were implemented in less than three months at each location, delivering a return on investment in three months from the reductions in inventory achieved. Planning with Excel spreadsheets is a common practice for a very small business, but we were becoming a large, global company that needed more sophistication and accuracy, says global supply chain manager Chris Muir. I suggested that we implement

Demand Solutions has reduced our estimated inventory by 60 percent in Europe and the Middle East, says Wheeler. More importantly, we have reduced our order lead times from three months down to 10 to 20 days.
6 demandsolutions.com

Seasonal Joe
On a cold day, there is nothing like a hot cup of a favorite drink to warm the spirit. Seasonality for the coffee industry is fairly consistent; the colder the temperature, the more coffee people buy, and the same is true for warm weather and cold concoctions. Though the trends were predictable, Gloria Jeans Coffees was not able to efficiently manage them while planning with Excel spreadsheets. Demand Solutions has since completely automated the procedure. Forecast Management tracks, for example, that summertime in Australia is actually wintertime in Europe and it optimizes inventory across the hot and cold drink ranges accordingly. Along with being able to track seasonal trends on the demand side of the business, Demand Solutions also manages the supply needed to maintain high customer service levels. When Forecast Management detects a seasonal trend, it sends a signal to Requirements Planning to replenish inventory and even creates a bill of materials (BOM) to assist with procurement. The BOM functionality helps the company figure out how much GJC Special Espresso Blend to make as it accounts for 40 percent of total inventory. Gloria Jeans Coffees sells over 63 varieties of blends and flavors of coffee beans, including flavors as decadent as they sound such as chocolate macadamia, butter toffee and mocha java. The companys coffee comes from selected plantations in more than 15 countries across the worlds coffee regions. Only the highest quality graded Arabica beans are purchased from an increasing number of Rainforest Alliance Certified Growers meaning that not only will guests get a great cup of coffee but that cup will also be supporting local farmers, workers, their families, local communities and the environment. The company calls it Great Coffees with Heart in line with its corporate values. These values include supporting local and regional causes as well as global projects such as Compassion, through which they support 350 children in the coffee growing regions of Brazil, and Opportunity International, which provides micro loans to villagers in rural Asia.

Customer Challenge:

Leading specialty coffee retailer struggled to balance demand and supply streams using an Excel-based planning process. Main business problems: 120- to 140-day lead times Product seasonality New product introductions

Solution:

Demand Solutions Forecast Management and Requirements Planning

Environment: Results:

JIWA ERP system

Reduced inventory by 60% in Europe and the Middle East Reduced inventory by 25% for the core Australian market Increased forecast accuracy on new product introductions Improved ability to manage product seasonality Increased ability to meet International Promotional programs

Best practices learned:

Excel-based planning is risky, inaccurate Use of automated demand forecasting and inventory management system increases staff efficiency and profits Match supply chain planning with marketings promotion calendar

DS Magazine

COVER STORY

In my 15-year career of demand forecasting, I have never experienced such high forecast accuracy as I have at Gloria Jeans Coffees, says Wheeler.
Additions to the inventory menu
From 1995 when Nabi Saleh and Peter Irvine bought the Australian Master Franchisee license to today where they own the Global Franchise rights, the company has been innovating new flavored whole beans, coffee blends, and tempting hot and cold drinks for its menu. To set each new item up for success and sales, the company needed a unified strategy to coordinate marketing efforts with inventory availability. While planning in Excel spreadsheets, the International Master Franchise Partners would often receive products after their promotional marketing campaigns planned launch dates. The company implemented Demand Solutions to help it manage and increase sales on new product introductions. With Forecast Managements Curves functionality, Gloria Jeans Coffees can objectively forecast new products by replicating the demand pattern from a similar products introduction. By applying the new items actual sales to the Curve, the company can achieve inventory optimization and can align the items supply chain journey with the international marketing promotion calendar. When we introduce a new product, we are actually able to tell franchise partners when the new item or packaging will arrive in the warehouses, says Muir. Demand Solutions sharing, has increased our our communication and information allowing Master Franchise Partners and overall company to grow and prosper. Along with helping the company successfully launch new products, Forecast Management also empowers the company to phase out old products with its Supersession functionality. Gloria Jeans Coffees achieves inventory optimization by closely managing product phase-outs and phase-ins with ease. In my 15-year career of demand forecasting, I have never experienced such high forecast accuracy as I have at Gloria Jeans Coffees, says Wheeler. Demand Solutions has transformed our previously undeveloped supply and demand planning process into a best-in-class method.

8 demandsolutions.com

COVER STORY

Heating Up the Global Coffee Market

Known for its friendly baristas and cozy atmosphere, Gloria Jeans Coffees strives to be the most loved and respected coffee company in the world. And its not far from reaching that goal. In Australia alone, where it serves more than seven million coffees per month, no other international or local competitor has been able to break its leadership in the countrys sophisticated coffee market. The supply chain visibility that Demand Solutions provides has become our companys competitive advantage, says Muir. Not only has the supply and demand planning software saved us working capital by reducing our lead times and increasing our planning accuracy for product seasonality and new product launches, it has given us the necessary framework to rapidly expand our franchise business globally. With new countries joining the Gloria Jeans Coffees Master Franchise Partner network on an almost monthly basis, the company is confident that it will be able to support them with the help of its new planning system and international warehouses. Aside visibility, from Gloria its improved Coffees supply chain its Jeans attributes popularity to its socially-conscious business model, the make-yourself-at-home vibe every store exudes and the friendliness of its employees. We call it Great Coffees with Heart, says Muir. Our guests come to Gloria Jeans Coffees stores across the world because they enjoy feeling welcomed and appreciated by our baristas and being part of the local community. As an added bonus, they can drink what we believe to be the best coffee in the world!

Grind

Distinguishing features
Distinct particles. Chunky. Gritty. Resembles sand. Smooth. Particles smaller than table salt. Very smooth. Particles finer than table salt. Powder-like. Resembles flour.

Typical coffee-brewing method

French press. Percolator. Vacuum coffee pot. Drip coffee makers with flat bottom filters. Drip coffee makers with cone filters. Espresso moka pots. Espresso machines (pump or steam). Ibrik. DS Magazine

The Daily Grind

Which grind is right for your brewing machine? To ensure a great cup of coffee, match your brewing machine to the appropriate grind.

Coarse Medium Fine Extra fine Turkish

Wins Best-in-Class Award

Automated Store-Level Replenishment

ith the help of Demand Solutions Retail Planning software, greeting card and giftware manufacturer Paper Island Ltd. transformed the replenishment of store-level inventories from a traditional and manual

process into an award-winning one that has enabled the company to optimize inventory and increase sales by more than 30 percent. Managing Automation magazine awarded UK-based Paper Island, a subsidiary of History and Heraldry, with the distinguished Progressive Manufacturing 100 (PM 100) Award for the auto-replenishment process it established using Demand Solutions Retail Planning. The manufacturing magazine recognized Paper Island as a best-in-class manufacturer with a model supply chain quite an honor for a company that operates in a highly competitive market where the ability to differentiate based upon supply chain efficiency is increasingly important.

Greetings to a New Auto-Replenishment Process

Paper Island designs and produces creative greeting cards and giftware for all occasions and seasons through its best-selling brands Fizzy Moon and Angels at Heart. The company sells its products to more than 700 independent retailers and several large retail chains. Paper Island launched the auto-replenishment project after experiencing significant stock-outs at its primary customer, one of the largest card and gift retailers in the UK. When the we realized were stock-outs

resulting in lost sales for both our company and our customer, we decided to evaluate the entire inventory planning and replenishment process from start to finish, says director of operations Phil McNulty. Historically, Paper Islands primary customer replenished its greeting cards using the traditional stock notification ticket placed behind the cards in the greeting card pocket. When stock levels reached a certain point,

10 demandsolutions.com

Paper Island

he r

Su

cc e

ssful Cu st

om
er :

Anot

cards. When Paper Island discovered that tickets were becoming misplaced or lost and not being pulled in time to replenish cards before stocks were exhausted, the company decided to search for a more efficient and automated replenishment process that would guarantee its greeting cards would remain on its primary customers shelves. Because Paper Island already utilized two of Demand Solutions supply chain management systems, Forecast Management and Requirements Planning, implementing Demand Solutions Retail Planning was a natural fit for the company to address its store-level inventory planning problem. Demand Solutions ability to optimize store-level replenishment using point-of-sale (POS) data was just what Paper Island needed to streamline and automate the inventory replenishment planning process. Paper Island implemented Retail Planning in just 10 days. After experiencing overwhelming success at the initial 10 pilot stores, the company continued to deploy the software in additional stores. Today, the program is fully functional in 350 of the major UK retailers branches.

McNulty.
Sales for seasonal items have also increased. Demand

Solutions ability to

ol s u ti ons cro with Mi

control seasonal challenges was first tested during Christmas, Paper Islands largest sales season. By the end of the season, Paper Island was celebrating its inventory planning success. Sales of cards and gifts for the Christmas season were approximately 34 percent higher than previous years, says McNulty, who credits the jump in sales to Demand Solutions. Although the quality of designs and products were improved, we believe that the sales increase was largely because of Demand Solutions Retail Planning. In order to effectively manage these seasonal spikes in demand, it is imperative that operations run smoothly inside Paper Islands manufacturing and distribution center in Rotherham, as it is the cornerstone of the companys supply chain. With the help of Demand Solutions, Paper Island has been able to refine its operations within the center. After implementing Demand Solutions Retail Planning, our ability to schedule and manage work through our warehouse has significantly improved, says McNulty. The warehouse now works to a repeating weekly cycle, allowing the gearing of warehouse resources to meet the growing demand for our products. Replacing the time-consuming and ineffective replenishment process with a new automated one powered by Demand Solutions was a smart decision for Paper Island. The company has created a mutually profitable relationship with its primary customer and has gained a significant competitive advantage. Our decision to invest in the auto-replenishment process with Demand Solutions Retail Planning software has not only redefined our supply chain but has allowed us to reinforce our position as a first-class supplier.

Something to Celebrate
Since implementing the new software, Paper Island has achieved substantial results. Most notably, the company has reached its goal of reducing stock-outs and increasing sales. Shortly after we implemented Demand Solutions, like-for-like sales of our main brand Fizzy Moon were 44 percent higher in the stores being auto replenished through

Sales of cards and gifts for the Christmas season were approximately 34 percent higher than previous years, says McNulty. Although the quality of designs and products were improved, we believe that the sales increase was largely because of Demand Solutions Retail Planning.
DS Magazine

of

tD

and replenished the card pocket with more greeting

non auto-replenished stores, says

ynam

store staff manually pulled the stock notification ticket

Demand

Solutions

than

in

the

ics

Dema
nd
S

11

Manual Planning Processes Are So Last Season

n a stable economy, manufacturers in the apparel industry must manage the delicate balance between inventory and out-of-stocks while factoring in size, fit and color variations,

Its old planning process that had led to a more than 40-week supply involved one planner, 20 hours per week, a calculator and endless stacks of paper. Without any manage-by-exception capabilities, the previous planner spent several hours each week reviewing the forecast line by line for each item. So when that planner left the company and all of the knowledge about Rafaella Apparel Groups inventory planning went with him, the company hired a dedicated planning professional and began evaluating automated supply chain management systems that would propel its profits. Sean Carolan, director of retail planning and replenishment, joined Rafaella Apparel Group in 2006 to lead its forecast management and inventory planning. Carolan along with Rafaella Apparel Groups CFO compared several software programs and chose Demand Solutions because of the simplicity it offered to the complex business.

lead times and sourcing pressures. During a recession, forecast management and inventory planning is infinitely more complex. One of the many companies dealing with the added pressures of the economic downturn is Rafaella Apparel Group, Inc., a designer, sourcer and marketer of womens clothing since 1982. Along with the usual challenges, the company must also account for record declines in consumer spending and the threat of its suppliers and retail customers going out of business. Known for providing functional and fashionable clothing for womens work and life wardrobes, Rafaella Apparel Group was fortunate to have a supply chain management system in place when the economy began to deteriorate. The company implemented Demand Solutions supply chain management software three years ago, empowering it to eliminate USD $14 million in excess inventory the result of its previous, manual inventory planning process.

12 demandsolutions.com

Rafaella Apparel Group

We especially liked that Demand Solutions had all the functionality we needed without the bloated price tag common for most supply chain management software, says Carolan. Other systems we evaluated offered functionality that we didnt need with a higher total cost of ownership and longer implementation times. The company implemented Demand Solutions Forecast Management and Requirements Planning in two weeks to manage the demand forecasting and inventory replenishment of its bottoms business (pants, skirts and shorts).

Carolan. Though the reality was difficult to digest, Demand Solutions kept our inventory problem from spiraling out of control and helped us take deliberate action in advance of the recession.

the recession because last years sales will surely not repeat themselves. Previously, Carolan used historical sales data in Demand Solutions Forecast Management to develop a system forecast and then he incorporated in the sales representatives forecasts. Before the recession, the demand forecasting process was mostly automated. Inventory planning in a recession is like working in fast forward, says Carolan. By the time the system or anyone can detect a demand trend, it changes. Because Demand Solutions planning methods are not solely based on statistical equations, we can incorporate our own intelligence which has proven to be critical in recent months.

Layers of Complexity
Since mid-2008, the economic downturn has added a layer of complexity to the companys well-heeled inventory planning process. Specifically, the threat of vendors and retailers going out of business has made Carolans job more like a financial reporters. The recession is forcing us to focus on every account because we run the risk of retail customers and suppliers going

Excess Inventory is oh-so Unflattering

Rafaella Apparel Group quickly transitioned from a manual process to a systematic one. The new forecasting and inventory management systems provided visibility into the entire supply chain, resulting in demand forecasting accuracy, optimized inventory planning and a new sense of accountability for employees. Better yet, the $14 million in excess inventory, or enough inventory to sustain an entire year of customer orders, rapidly melted from the companys bottom line and it reached a return on investment within months. Three years ago, our company thought that it was effectively managing its inventory, so it was quite a shock when Demand Solutions identified an excess of $14 million, says

out of business at a moments notice, says Carolan. We actually have placed orders with companies and theyve filed for bankruptcy days later. You never know, so you have to be attuned to their businesses as much as you are your own. To do this, Carolan keeps an eye on the news and an ear to the phone to make sure he doesnt miss a stitch of information that could add to the companys supply chain management process. The key is having as much information as possible, says Carolan, who previously discussed order amounts and product lead times with customers and suppliers, not the financial security of their businesses. Forecast management has been another main struggle for Carolan during

Fashionably Functional Inventory Planning

Although the recession has impacted Rafaella Apparel Groups sales figures, the company is in a good position to ride out the tough times ahead. It has a solid planning process in place with Demand Solutions and its Rafaella brand is positioned as the entry-level price point, priced approximately 20 percent below competition, in sportswear departments of department stores. Our brands are fairly resilient, says Carolan. Rafaella clothing is designed to fit into womens multifaceted lives. Im not a fashion guy but recession or not, women will always need that perfect pair of black pants.

Three years ago, our company thought that it was effectively managing its inventory, so it was quite a shock when Demand Solutions identified an excess of $14 million, says Carolan. Though the reality was difficult to digest, Demand Solutions kept our inventory problem from spiraling out of control and helped us take deliberate action in advance of the recession.
DS Magazine

13

Woodcraft Supply

Ingraining Inventory Planning into the Business

upplying

woodworkers

with

superior

woodworking

achieve this, planners download the franchises sales figures daily and analyze the data on a monthly basis to improve each stores supply and demand planning in order to optimize inventory at the distribution center. While Woodcraft Supply distributes woodworking tools and supplies, it also performs light assembly and kitting from components manufactured in the United States and overseas a combination that adds complexity to the planning process. Demand Solutions Requirements Planning helps establish accurate inventory planning that takes into account lead times, product seasonality and the many constraints on inventory management. The ability to manage product lead times is especially important because some items have lead times of one year or more. Adding complexity to the forecast are Woodcraft Supplys diverse marketing channels. As its marketing landscape has evolved, managing three sales channels retail, catalog and online has become a multifaceted task. In 1992, catalog sales were 80 percent of the companys business, but today, retail stores generate a significant percentage of the companys sales. In order to effectively adapt to this change, Woodcraft Supply uses Forecast Managements Aggregation/Proration feature to examine its sales data on a variety of levels. New product introductions are often a companys biggest challenge, but Woodcraft Supply manages them with ease by utilizing Demand Solutions Forecast Management. VanCamp depends on the demand planning softwares Curves feature to generate forecasts for new products that do not have historical sales data. Demand Solutions ability to predict how products might perform has been critical to our growth and continued success, says VanCamp. Using the robust Curves functionality, Woodcraft Supply has been able to successfully introduce from 500 to 1,000 new items each year.

products and expert advice since 1928, Woodcraft Supply, LLC has expanded far beyond the initial one-room shop in

Boston, Mass. The company now sells woodworking tools and supplies through 87 franchised retail stores in the United States, its website and its catalog that is distributed in all 50 states and 117 countries. Demand Solutions facilitated Woodcraft Supplys extensive growth by helping reduce inventory, cut costs and increase profit margins. We were a USD $10 million company in 1994 with five stores, and now were between $100 and $300 million with almost 90 stores, says vice president of distribution and purchasing Jerry VanCamp. Demand Solutions supply chain management software enables us to keep up with our rapid growth rate by managing our inventory in a way that reduces expenses and increases profits. The company has been using Demand Solutions Forecast Management and Requirements Planning software for more than 14 years to help with its demand planning, inventory planning and replenishment. With only one distribution center in West Virginia replenishing each of the retail outlets, Woodcraft Supply has to precisely manage its inventory to avoid stock-outs and maintain high customer service levels. The company accomplishes this by planning at the corporate level; planners at the corporate office generate demand forecasts and perform inventory planning for each store. To

14 demandsolutions.com

Customers Pick:

Favorite Demand Solutions Functionality Aggregation/Proration

because of its use of Demand Solutions to reduce expenses and maintain high service levels. One of its inventory planning strategies with Demand Solutions Forecast Management has been to utilize formulas within the demand planning software that are more suited for recognizing downward sales trends. The Exponential Smoothing started using Demand algorithm incorporates more recent sales history, providing greater visibility into customer demand during unpredictable economic times. Unlike a lot of systems that have simplistic, purely mathematical demand forecasting formulas, Demand Solutions has sophisticated algorithms that take into account multiple factors and incorporate our business intelligence, says VanCamp. For VanCamp, Demand Solutions has provided more than a solution to Woodcraft Supplys business problems. Throughout my career working with Demand Solutions, I have been able to share my inventory planning experiences with other Demand Solutions customers and learn from their experiences as well, says VanCamp. When you implement Demand Solutions, you are not just another customer. You are a member of a larger community that youre able to engage with to share best practices and lessons youve learned along the way. while maintaining Allows users to view data at any detail level within Forecast Management. With this functionality, Woodcraft Supply can look at the data on a company level and then arrange it in a more detailed view by region, store or product.

Hammering Out Complexities

By aggregating its sales channels data

into a high-level view, Forecast Management has allowed Woodcraft Supply to vigilantly monitor its inventory levels. Prior to implementation, inventory levels were growing faster than sales, inventory turns were decreasing and customer service levels were declining. When I Solutions in 1995, we were a $10 million company. However, $3 million of that value was invested in inventory, says VanCamp. With the help of Demand Solutions, we anticipated that we would have to stock $10 million in inventory in the near term to keep up with our 10-15 percent per year growth rate. Today we keep about $9-11 million in inventory and we are over $100 million in revenue. That is a testament to how well we have been able to manage our inventory with Demand Solutions. Additionally, the company has increased inventory turns from 1.5 to over five per year. Now, Woodcraft Supply manages an optimized inventory high service levels. Every year since implementation, our service levels have increased. Our customer service levels are now the highest in the industry, says VanCamp. We have Demand Solutions to thank. The software seamlessly balances service levels and inventory for the most profitability.

Curves
bjectively forecasts new products O by cloning the demand pattern from similar products within Forecast Management. This powerful feature responds quickly and dispassionately to each new products initial sales. Woodcraft Supply employs Curves for visibility into a products demand that has no sales history.

Lead Time
llows users to establish order A parameters for each product in each location within Requirements Planning. This functionality automatically incorporates Woodcraft Supplys elongated lead times due to offshore manufacturing into the inventory planning process.

Exponential Smoothing Formula

n algorithm within Forecast A Management that incorporates more recent sales history to account for temporary dips in the market. Woodcraft Supply is using this feature to help forecast customer demand during the economic downtown. DS Magazine

More Than a Tool

Achieving a competitive advantage when the economy is strong is one thing. Woodcraft Supply has gained significant market share during the economic recession

15

Nisbets

Catering to Long Lead Times

Supplier Fulfills Next-Day Delivery Guarantee

onsider the following scenario. It is 4:30 on a Friday afternoon. Your restaurant is catering a wedding for 200 guests tomorrow and your

Supply Chain Prep Work

The B2B catering equipment distributor purchases all of its 13,000 products, which include everything from chefs jackets to heavy duty catering equipment, from suppliers around the world. Because of this, Nisbets juggles varying lead times that range from a single day up to six months. Accurate demand planning is extremely important to ensure Nisbets can deliver on its next-day promise and avoid excess inventory that would tie up working capital. In 2006, this balancing act became too difficult to manage using Excel spreadsheets. Nisbets needed a more sophisticated solution to manage its multifaceted supply chain and rapidly growing business in order to sustain its leading market position. After assessing the functionality and cost of several supply chain management systems, Nisbets came across Demand Solutions while searching the web for a demand planning solution. We chose Demand Solutions because it offered all of the powerful functionality that we needed at an affordable price, says inventory control manager Matthew McMahon. A critical factor in our demand planning software evaluation was total cost of ownership. Demand Solutions clearly emerged as the value-priced solution as its implementation is often within 90 days and its yearly maintenance fees are the lowest of the supply chain management software industry.

Imperial 8-Burner range just quit working. How will you ever get a new range in time to prepare the meals? You remember that Nisbets, the UKs largest catering equipment distributor, guarantees next-day delivery. You log on to their website and complete your order before 5:00 p.m. Now you can relax knowing the range will be delivered in time to meet your approaching deadline. Next-day delivery is a demanding guarantee for a company managing a complex supply chain, but with the help of Demand Solutions Forecast Management and Requirements Planning, Nisbets is able to forecast demand and stock inventory accordingly in order to deliver this challenging promise to its customers, which include large restaurant chains, hotel chains, hospitals and schools.

16 demandsolutions.com

Nisbets

A critical factor in our demand planning software evaluation was total cost of ownership. Demand Solutions clearly emerged as the value-priced solution as its implementation is often within 90 days and its yearly maintenance fees are the lowest of the supply chain management software industry.

Appetizing Results
We were able to reduce our inventory by 19 percent 1.9 million pounds (USD $3.1 million) in just seven months after implementing Demand Solutions, says McMahon. We experienced a full return on investment in just a few months by optimizing our inventory alone. The most visible impact of Demand Solutions was the optimization of the companys product mix. The software immediately identified those items that were overstocked and those that required immediate purchasing action. For example, Nisbets was previously carrying six weeks worth of safety stock for its second-best selling product, tea towels. Demand Solutions, through its Service Level Optimizer utility, recommended that the company keep only two weeks worth of tea towels a significant stock decrease. We were initially skeptical of the reports from Demand Solutions because we assumed we needed to store a lot of extra inventory in order to keep our brand promise, says McMahon. After noticing that stock-outs continued to decrease even with the safety stock reduction, our team put full faith in Demand Solutions. In fact, out-of-stocks reduced from 4 percent to 1.5 percent an acceptable percentage considering the company distributes many low-selling items such as kitchen accessories and spare parts that are difficult to forecast.

seasonal, but it was too difficult for him to pinpoint which ones while using spreadsheets for demand planning. With Demand Solutions graphs and charts, seasonal items are easy to identify. Some products such as barbeques, ice makers and ice-cream machines, are clearly seasonal during the summer months, but as a surprise to McMahon, Demand Solutions identified that other ordinary items are also seasonal. Everyday utensils such as forks, knives and plates are seasonal with a strong volume build in the months leading up to Christmas and New Years. In addition to forecasting seasonal demand, McMahons favorite functionality in Demand Solutions Requirements Planning is the scenario-planning ability. If Nisbets receives a killer purchase order, McMahon is immediately able to detect how that order will impact future inventory, service levels and potentially the companys bottom line. This provides Nisbets with the information necessary to negotiate the order with the customer instead of filling it without knowing the resulting consequences. Since its inception 25 years ago, Nisbets has grown into a thriving company with a strong brand promise. In the past five years alone the company has grown 19 percent; McMahon credits this expansion partly to Demand Solutions. In 2007, after using Demand Solutions for just one year, we added operations in Spain and France and a consolidation warehouse in China, says McMahon. We intend to continue on this path of growth and expand into other parts of Europe in the future. And I am confident that Demand Solutions will be a key enabler in helping us achieve that dream. DS Magazine

Serving Up a Seasonal Forecast

Along with reducing inventory and out-of-stocks, Demand Solutions has identified the seasonality of many of Nisbets products. Prior to Demand Solutions, McMahon suspected that certain products were

17

Hansen Natural

onster Growth

roviding chilled, liquid energy for millions of lethargic consumers, Monster Energy drinks have stimulated revenues for its parent company

a previous company, James Hardie, and recommended Demand Solutions Forecast Management and Requirements Planning as the answer to Hansen Naturals demand forecasting and production and inventory planning problem. I chose Demand Solutions over the other supply chain management software that we evaluated because its a best-in-class solution at an incredible value, says Hayes. Based on my previous use of Demand Solutions, I knew it could solve all of our challenges including dynamic growth, international market introductions, product line extensions and meticulous production schedules.

Hansen Natural Corporation. Since the launch of the Monster Energy brand, Hansen Natural has grown spectacularly revenue has almost doubled since 2006. A leading marketer of all-natural alternative beverages, Hansen Natural manufactures and distributes energy drinks, smoothies, juices, teas and sodas to grocery chains, wholesale clubs, distributors and foodservice operators. The California-based company implemented Demand Solutions in 2005 to accommodate the rapid growth of its Monster Energy brand. Because successful Monster to handle of the softwares of Hansen and management Energy, the

Stimulating a New Production Matrix

To cut inventory-related expenses, the companys planners worked closely with Demand Solutions local representatives to create a localized production matrix. In order to create the new production schedule, the company segmented its customer base by geographic region and associated each region to the closest plant. Utilizing the new streamlined production matrix, the regional plants receive their production requirements based on their regional customers demand. We have reduced our carrying costs by scheduling production based on what we need, not what we think we need, says Hayes. The new production schedules and forecasts have not only increased Hansen Naturals efficiency, but also cut freight costs. According to Gina Gutierrez, manager of demand planning, We were making product on the West Coast (U.S.) and shipping it to the East Coast and everywhere in between. Demand Solutions Requirements Planning has tightened the entire process and dramatically reduced our overall inventory expenses.

Natural uses Demand Solutions supply demand planning for all of its products. Since implementation, the supply chain management software has become an integral ingredient to the companys continued success by reducing inventory-related expenses, increasing sales and customer service levels, and enabling profitable decision-making. Prior to Demand Solutions, Hansen Natural had no dedicated planning or production scheduling system and attempted to manage its supply chain through a series of spreadsheets. In this process, historical data was not incorporated into the estimate, and without tracking the necessary statistics, the company could not reliably forecast demand. As the Monster Energy brand gained market share, Hansen Natural needed to improve its supply chain management and demand forecasting in order to quench its customers thirst. Tim Hayes, vice president of operations, had used Demand Solutions at

Alert to Seasonality
Hansen Natural also increased sales and customer service levels by effectively managing product seasonality. According to Gutierrez, each of Hansen Naturals product lines have distinct

18 demandsolutions.com

Which Monster suites you?

Monster Original
packs the original high-energy Monster brew with the classic Monster flavor. is a low-calorie and low-carb version of the original Monster Energy brew that packs the same energy punch as the original. blends 50 percent juice (apple, orange, pear, peach, tangerine, pineapple and white grape juice extract) with the original Monster taste and classic buzz. infuses the Monster brew with 80 percent tropical juices (apple, passion fruit and pineapple juice concentrate) for an explosive flavor with a punch of energy. throws 30 percent juice (apple and red grape juice concentrate) into the original Monster energy-blend. charges premium coffee and cream with the Monster energy-blend for a supercharged energy drink with half the caffeine of regular coffee. is a non-alcoholic version of a classic coffee cocktail infused with the original Monster buzz.

Monster Lo-Carb

sales trends. For example, Junior Juice and Juice Slam juice boxes are in high demand when school is in session, while the 8oz. Natural Soda Mixers are more popular during the holiday seasons. In the high-volume energy industry, juice-based energy drinks such as Rumba, which is made of 100 percent juice, have higher sales during the spring and summer, while energy drinks that contain dairy such as Java Monster, an energizing mix of premium coffee and cream are in higher demand in the late summer and early fall. To manage the diverse seasonality of each product, Gutierrez utilizes Demand Solutions Forecast Management, which automatically accounts seasonality into each products forecast to create a reliable and highly accurate demand projection. Then, planners adjust safety stock levels accordingly at the more than 35 plants and warehouses located in the United States, optimizing Hansens inventory levels. Without such an innovative planning tool, we would have an incredibly difficult time managing all of our plants, says Gutierrez. Because we implemented Demand Solutions, we are able to get a complete and clear picture of our business. By managing product seasonality, Hansen Natural is able to supply customers with the products they want and avoid missing sales opportunities due to out-of-stocks.

along with inventory planners can supplement their knowledge with the systems insight into demand trends of a new product. In the early planning stages of new product introductions, Hansen Naturals forecasting team and marketing department monitor the software closely, choosing to manually review every forecast. Once the sales data is available, the planners confidently let the software take over. This process has proved effective as Hansen Natural has successfully extended the Monster Energy drink line to include 15 different flavors, such as Khaos, M-80, Mixxd and Assault.

Monster Khaos

M-80

Mixxd

Growth That Doesnt Tire

With Demand Solutions, Hansen Natural managed the increasing demand of its Monster Energy brand and now enjoys an efficient, regional production schedule that reduces expenses. The monetary success of our Demand Solutions purchase is difficult to identify as our companys sales have grown over 70 percent since 2006, says Hayes. I look at it this way we grew from around five plants to more than 35 plants in just a few years. With Demand Solutions, we have been able to handle the increased complexity of our production scheduling while only employing one additional planner. With such efficiency with Demand Solutions, expect Hansen Natural and the Monster Energy brand to continue to have energy in the years to come.

Java Monster Originale

Java Monster Irish Blend

Unleashed Sales
Managing new product introductions is a common challenge for inventory planners and prior to Demand Solutions, Hansen Natural didnt have the information necessary to make profitable decisions. Now with Demand Solutions Forecast Management, executives

DS Magazine

19

Murad

Beautifying the Forecast

ealth and beauty manufacturer Murad, Inc. produces creams and serums that solve a variety of health problems such as genetic and Founded in 1989 by Howard Murad, M.D., Associate Clinical Professor of Medicine at UCLA and a leader in skincare science, Murad, Inc. is known for developing products that use scientifically-proven methods to keep skin looking young, healthy and vibrant. Over the years, Dr. Murad and a team of scientists have created thousands of innovative health and beauty products that the company markets through four diverse sales channels: national, professional, direct and international. The national and professional channels each account for 20 percent of Murads business and sell products to major retail stores in the U.S. such as Sephora and Ulta and to beauty salons in the U.S. Through its direct channel, Murad sells directly to end consumers via its website, catalog and infomercials. Lastly, the international channel sells product to a growing list of countries around the world, including the UK, Canada, Japan, Turkey, Israel and Mexico. The decision to implement Demand Solutions in 2006 allowed Murad directors to balance the different channels and view each market segments preferences while maintaining superior customer service with optimized inventory levels. Because Murads channels, as well as customer demand, varies depending on the product, time of year and geography, the company has gained major insight into inventory control and planning efforts have become streamlined.

environmental aging, acne, redness and sensitivity, and cellulite. While the company investigated innovative solutions to help its customers with their health needs, it explored options to improve its inventory planning and demand forecasting processes. The privately-owned company focused on enhancing its inventory situation, including demand planning for thousands of SKUs in its diverse sales channels, managing product seasonality and introducing new products to the market. To maximize customer service, brand loyalty and effectively utilize company resources, Murad implemented Demand Solutions Forecast Management software.

Transforming Skincare Through a Transformed Supply Chain

Demand Solutions Forecast Management has helped Murad to manage its channels as four separate businesses. With its new demand forecasting software, the company is able to aggregate the demand for its sales channels through Forecast Managements easy-to-use Aggregation/Proration feature. With this capability, Murad can view all sales data for the entire company and then examine each sales channel individually. Forecasting manager Jorge Morlote, who joined the company shortly after implementation, says that he cannot imagine managing Murads thousands of records without the feature, which presents both a broad and detailed view of the business. As a foundation for inventory planning, Murad uses Demand Solutions Forecast Management with its Oracle ERP system. Morlote creates the initial forecasts

20 demandsolutions.com

Murads Award-Winning Product Portfolio

Murad Intensive Wrinkle Reducer for Eyes
SELF Magazine Healthy Beauty Awards 2009: Best Anti-Aging Eye Treatment

Murad Age Spot and Pigment Lightening Gel

in Forecast Management and then has each sales channels director add real-world insight into the forecast. Forecast Management allows us to incorporate indispensable outside knowledge such as distributor forecasts, managerial overrides and anecdotal notes about future developments, says Morlote. The ability to incorporate real-world insight along with the statistical formulas ensures the most accurate, quality forecasts. This flexibility allows the sales channels directors to account for each products popularity, which changes dramatically depending upon the marketing channel and brand objectives. Along with managing a high SKU volume in multiple sales channels, Demand Solutions also empowers Murad to effectively manage product seasonality, especially for its sun protection items that have an increased demand from March to June. The demand forecasting software accounts for this seasonality without many manual adjustments and has allowed Murad to prepare its inventory planning appropriately for the summer months and reduce stock-outs. In the past year and a half, Forecast Management has maintained an overall forecast accuracy of 85 percent or better, says Morlote. We know that the high forecast accuracy has optimized our inventory levels and minimized unnecessary expenses. InStyle Best Beauty Buys 2009: Best Spot Lightener

Celebs On Sunday UK Beauty Awards 2009: Soothing Face Creams

Murad Redness Therapy Correcting Moisturizer SPF 15

Dr. Murad Energizing Pomegranate Lip Protector SPF 15

Elite Bride Editors Choice 2009: Top 10 Beauty Pick

Murad Age Reform Intensive Resurfacing Peel

Star Superstar Beauty Awards 2009: Best Face Peel

Revitalizing New Product Introductions

Introducing new products to the market or to four different markets is a challenge that Murad constantly encounters as it innovates new beauty treatments, such as Active Sun Radiance Serum, the companys latest sun damage remedy that is receiving outstanding reviews. When introducing such new products, Murad often uses Demand Solutions Forecast Managements Curves feature to create a product forecast by cloning the demand pattern of a similar item. By combining the demand planning softwares objective predictions for new product sales along with managerial expertise, Morlote is able to forecast the demand for new products as accurately as possible. By taking into account the many factors that affect inventory planning, Murad was able to minimize expenses while maintaining high customer service levels. Utilizing Demand Solutions demand planning software to improve our forecast accuracy has resulted in lower inventory levels, which directly impacts our bottom line. According to Morlote, Demand Solutions Forecast Management software meets Murads needs while still being manageable for employees to use. I have planned in Excel spreadsheets and in the most complex supply chain management software and have found that Demand Solutions performs every function that a small-to-midsize enterprise needs in a logical, understandable way. DS Magazine

Murads beauty innovation goes beyond beauty products, the company also offers a world-class, award-winning Medical Spa. Services include:
Murad signature facials Salon services Massage and body treatments Special monthly events Visit www.murad.com to learn more

21

Seymour Manufacturing

Breaking Ground with Forecast Management

inspired. The idea of using statistical formulas to forecast customer demand intrigued him and he was determined to achieve such inventory planning accuracy at his company Seymour Manufacturing. The companys ERP consultant, David Buker Company, encouraged Fletcher to contact Steve Johnston, founder of Demand Solutions, because Johnston had developed demand forecasting software based on the Focus Forecasting principle. We didnt even have a personal computer yet, but I called Steve Johnston to talk to him about implementing Demand Solutions Forecast Management software, says Fletcher. He then discussed the benefits of the software with Seymour Manufacturings then sales manager, Mike Campbell, who later moved to St. Louis to become president of Demand Solutions. Within the year,

n 1987, after reading Bernie Smiths revolutionary inventory planning book, Focus Forecasting, Steve Fletcher was

Seymour Manufacturing purchased its first personal computer, implemented Demand Solutions and became the third user of the software. Now, nearly 25 years later, Seymour Manufacturing continues to rely on Demand Solutions as it has become a cornerstone of the companys entire business. Over the years, Seymour Manufacturing has grown substantially and the software has evolved with it. At the time, we were forecasting a couple hundred items, says Fletcher. We would start the forecasting process in Forecast Management on a Friday afternoon and let the system run over the weekend so the forecast would be complete by Monday morning. Then, we would print the forecast from Demand Solutions and manually key in the data into our ERP system. It was time consuming, but we didnt know anything different back then so we thought it was pretty advanced. Luckily for the companys long-time master scheduler, Brenda Jackson, generating a forecast for more than 3,000 items now only takes about two minutes.

Seymour Manufacturing was the third company to implement Demand Solutions

22 demandsolutions.com

Weve been using Demand Solutions for so long that it has become integrated into almost every function of our business, says Fletcher. Because of the software, we dont have the barriers between manufacturing, sales and marketing like some companies struggle with.

From Wagon Wheels to Shovels

Seymour Manufacturing has come a long way since its days as the premier manufacturer of wagon wheel spokes and hubs in the late 1800s. Today, the company is booming with four manufacturing plants producing thousands of products such as shovels, rakes, hoes and posthole diggers as well as the worlds best fiberglass lawn and garden tools. The company has successfully adjusted its product line to meet the modern needs of its customers. However, the manufacturer has not lost sight of the standardized nature of its products. We sell products that dig in dirt, says Fletcher. A shovel is a commodity, its one of the oldest tools that humans have. So we must provide superior quality at a very competitive price. Seymour Manufacturing uses Forecast Management to confront this challenge and several others including long lead times, late-shipment fines, stiff competition, as well as the current recession. The company must juggle inconsistent lead times that result from using a combination of in-house and offshore manufacturing. Manufacturing products in the companys U.S. plants takes three to five days. In contrast, items manufactured offshore have longer lead times typically 90 days. Because Seymour Manufacturing is penalized for shipping items late to some retail customers, prompt delivery is vital. The company competes in a fierce market consisting of only a few tool manufacturers; Fletcher attributes the companys success and its ability to face these challenges to its strong history and dedicated team as well as the advanced technology that Demand Solutions Forecast Management software provides. During a time of uncertainty in todays economy, Seymour Manufacturing is confident it can emerge from the recession on top. The companies that will go out of business will be the ones that dont manage their inventories properly, says Fletcher. With the help of Demand Solutions, the company is equipped with the tools it needs to manage its inventory and combat the perils of the current economy. Recently, Seymour Manufacturing reduced its inventory by 15-20 percent to free up working capital. Weve been doing this for over 20 years, says Fletcher. What keeps us competitive is that we maintain high standards for customer service. And customers do appreciate that.

Ground-Breaking Results
Utilizing Demand Solutions has not only helped Seymour Manufacturing overcome challenges, but the software has allowed the company to create cross-functional collaboration among its departments. Weve been using Demand Solutions for so long that it has become integrated into almost every function of our business, says Fletcher. Because of the software, we dont have the barriers between manufacturing, sales and marketing like some companies struggle with. Demand Solutions gives a transparent view of our business and therefore mandates that every person in every department is accountable there is no hiding place, there is no incentive to point fingers. Demand Solutions has also enabled Seymour Manufacturing to create detailed customer portfolios that allow the company to better manage its customer relationships. We have so much customer information within Demand Solutions. Its a great tool for us to gather and share information. Just that aspect of it is invaluable, says Fletcher. Sometimes we know more about our customers historical sales than they do. I could not possibly quantify the savings we have experienced through the use of Demand Solutions Forecast Management, says Fletcher. But what I do know is that the software has propelled us over the course of 20 years to make smart decisions that have guided our business to where it is today. DS Magazine

23

How will we get this rush order out the door?

Can we leverage alternate machines?

With so many factors to consider, whats the optimal solution?

Can we avoid adding overtime? Where do we have slack on other orders?

Weve Got You Covered.

Demand Solutions understands that when it rains...it pours. Its great when you land that big production job, but there are hundreds of details to be worked out in order to ensure you deliver on-time. Thats where Advanced Planning & Scheduling from Demand Solutions comes in. Streamline workflows to minimize lead times and in-process inventory. Gain visibility into potential bottlenecks that could slow you down. Keep your key customers happy without getting your feet wet. Visit us at demandsolutions.com/aps-knowledge-center or call 1.800.886.3737 for more information.

Advanced Planning & Scheduling