Optimisation of Production Planning
Delivery bottlenecks reduced by 73%
New predictive model reduced delivery bottlenecks by 73% whilst at the same time reducing the average inventory by 2%.
What was the business challenge?
A manufacturer was experiencing high production volatilities and long lead times due to challenges with the co-ordination of sales forecasting and production planning
How did Prospero provide a solution?
A new sales forecast model was built using DetectX® Business Monitoring and the underlying predictive analytics capability of the DetectX® platform. Prospero were able to create predictive models that forecast sales volumes based on sales history data and external market data.
Based on global sales data this model is run on a monthly basis providing an 18 month rolling sales forecast.
What were the results?
Based on this new forecasting model the manufacturer were able to optimise their production planning. This resulted in reducing delivery bottlenecks by 73% whilst at the same time reducing the average inventory by 2%. This balance was crucial as while high stock levels can improve lead times it impacts liquidity, so the challenge is to keep inventory low whilst improving lead times for delivery to customers.