Source: www.supplychain.com
Topic: Forecasting
Sort Desciption: ... plants on two continents. - Reducing inventory in plants not fully loaded and improving the scheduling and efficiency in fully-loaded plants. Solution - A collaborative forecasting and demand management ...
Content Inside: Phone: (302) 738 9215 | Fax: (302) 454 7680 | 5460 Fairmont Drive Wilmington DE 19808 2003 Supply Chain Consultants. All rights reserved. "We are very pleased with the measurable gains we've attained from better forecasting and inventory management. The process is solid but we could not have done our scheduling without the supporting technologies." - Sam Sampat Supply Chain Manager Chevron Phillips Chemical Company Forecasting is key to inventory control plant efficiency Chevron Phillips Chemical (CPChem) is a major global producer of ethylene propylene polyethylene polypropylene and a variety of specialty chemicals. With plants in Texas and Belgium CPChem produces about 40 million gallons of some 200 products; the majority are the hydrocarbon solvents used by its customers to make pipe and other products. As a direct result of the implementation of a new enterprise (ERP) system the company essentially lost its legacy forecasting process and tools. With the help of Supply Chain Consultants (SCC) CPChem re-established demand management as a key part of planning and scheduling for more effective control and operations. With a worldwide forecasting model as its base the demand management system calculates the appropriate safety stock for each product and location to maintain the desired service level. Today supply chain managers can see the days of supply of each product and better manage production runs and stock levels. This yields significant inventory reductions and increases in plant efficiency. Now more than 20 sales reps can easily contribute to a forecast including any additional intelligence they may have regarding customer plans changes in market conditions or other outside information. The results from this collaborative effort appear in the next day's demand plan and provide a timely and accurate feed for scheduling. The new demand management process leverages SCC collaborative tools for demand pl ...
