{"id":1157,"date":"2011-04-14T17:48:18","date_gmt":"2011-04-14T21:48:18","guid":{"rendered":"https:\/\/demand-planning.com\/?p=1157"},"modified":"2011-04-14T17:48:18","modified_gmt":"2011-04-14T21:48:18","slug":"transforming-the-supply-chain-with-forecasting-and-demand-planning-at-electrocomponents-plc","status":"publish","type":"post","link":"https:\/\/demand-planning.com\/2011\/04\/14\/transforming-the-supply-chain-with-forecasting-and-demand-planning-at-electrocomponents-plc\/","title":{"rendered":"Transforming the Supply Chain with Forecasting and Demand Planning at Electrocomponents plc"},"content":{"rendered":"<p><strong> <\/strong><\/p>\n<p><strong> <\/strong><\/p>\n<p><strong> <\/strong><\/p>\n<p><strong><\/p>\n<div id=\"attachment_1159\" style=\"width: 140px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/demand-planning.com\/wp-content\/uploads\/2011\/04\/Andrew-Lewis-Electrocomponents1.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1159\" class=\"size-full wp-image-1159\" title=\"Andrew Lewis - Electrocomponents\" src=\"https:\/\/demand-planning.com\/wp-content\/uploads\/2011\/04\/Andrew-Lewis-Electrocomponents1.jpg\" alt=\"Andrew Lewis - Electrocomponents\" width=\"130\" height=\"160\" \/><\/a><p id=\"caption-attachment-1159\" class=\"wp-caption-text\">Andrew Lewis - Electrocomponents<\/p><\/div>\n<p><\/strong><\/p>\n<p><strong> <\/strong><\/p>\n<p><strong> <\/strong><\/p>\n<p><strong>The Background\u2026<\/strong><\/p>\n<p>Throughout a financially turbulent 2009, the <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=297\">Supply Chain<\/a> at Electrocomponents plc needed to better integrate into the business and become more intelligent, agile and effective. Just two years into our long-term transformation journey, our key innovations have been to:<\/p>\n<ul>\n<li>Introduce <a href=\"www.ibf.org\">formal      forecasting<\/a>.<\/li>\n<li>Embed leading Supply      Chain thinking including <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=307\">demand planning<\/a> and SIOP where many thought it      couldn\u2019t be done in an industry like ours.<\/li>\n<li>Integrate leading      edge<a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=312\"> forecasting technology<\/a>.<\/li>\n<li>Identify unsatisfied      demand resulting in back orders, lost sales or substitutes.<\/li>\n<li>Transfer our Supply      Chain from the UK      to an international focus.<\/li>\n<\/ul>\n<p><strong>The Burning platform\u2026<\/strong><\/p>\n<p>Our Electronics Division\u2019s strategy to expand our global range by 120K products over the next 2 years required a step change in <a href=\"http:\/\/www.ibf.org\">forecast accuracy<\/a> and safety stock policies. This in turn would \u00a0support the high level of New Product Introductions (NPI) that would be involved. Our outdated processes had been designed to cope with circa. 5,000NPI\/annum and had to be changed so \u00a0that they would be capable of coping with 5,000NPI\/month.<\/p>\n<p>A key challenge for the <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=297\">Supply Chain<\/a> in most organizations is <strong>a<\/strong>ligning the business behind a single set of numbers. We chose a SIOP process rather than <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=314\">S&amp;OP process<\/a> to manage this because we do not consider inventory to be waste, unwanted or an accident in our business. Inventory \u00a0is fundamental to our business model as a distributor.<\/p>\n<p>Above all else, it has been real innovations like positioning our Supply Chain within a <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=307\">Demand Driven Value Network<\/a> , SIOP, and the development of true lost demand that have started to shape a truly agile and intelligent global Supply Chain at RS Components. In the future we hope to integrate<a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=312\"> trend software<\/a> drawing from our eCommerce site to further strengthen our demand signals.<\/p>\n<p><strong>The payback\u2026<\/strong><\/p>\n<p>Our <a href=\"http:\/\/www.ibf.org\">Supply Chain performance has improved<\/a> with:<\/p>\n<ul>\n<li> Increased service to our customers whilst      adding nearly 60,000 products per year.<\/li>\n<li>Process 40,000      parcels per day (1 every 2 seconds), and deliver 99.8% on time in full.<\/li>\n<li>Maintain stock turn      and increase cash flow during the difficult transition period.<\/li>\n<li>We have gone from      5,000 New Product Introductions (NPI)\/year to 5,000 NPI\/month!<\/li>\n<li>Stock Availability      greater than 97.5%.<\/li>\n<li>Reduced Supply Chain      cost by 9.5%.<\/li>\n<\/ul>\n<p>We have learned a lot of lessons, some of them the hard way, as we have taken this journey and I look forward to sharing our experiences with you at IBF\u2019s <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=307\"><strong>Demand Planning &amp; Forecasting: Best Practices Conference in Dallas, Texas. <\/strong><\/a><\/p>\n<p>Andrew Lewis<br \/>\nHead of Global Supply Chain Planning<br \/>\nElectrocomponents plc<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #ff0000;\"><strong>Hear Andrew Speak At: <\/strong><\/span><\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=307\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1140\" title=\"dallas_banner\" src=\"https:\/\/demand-planning.com\/wp-content\/uploads\/2011\/03\/dallas_banner.jpg\" alt=\"Demand Planning &amp; IBF's Forecasting: Best Practices Conference w\/ Demand Management Forum\" width=\"448\" height=\"191\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Background\u2026 Throughout a financially turbulent 2009, the Supply Chain at Electrocomponents plc needed to better integrate into the business and become more intelligent, agile and effective. Just two years into our long-term transformation journey, our key innovations have been to: Introduce formal forecasting. Embed leading Supply Chain thinking including demand planning and SIOP where [&hellip;]<\/p>\n","protected":false},"author":772,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[60,61,62,63,41,64,65,145,34,67,39,68,69,70,35,42,43,44,36,48,81,40,37,73,74,38,75],"class_list":{"0":"post-1157","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-forecasting-and-planning","7":"tag-best-practices","8":"tag-business-forecasting","9":"tag-collaborative-forecasting","10":"tag-dallas","11":"tag-data-cleansing","12":"tag-demand-forecast","13":"tag-demand-forecasting","14":"tag-demand-management-forum","15":"tag-demand-planning","16":"tag-demand-planning-and-forecasting-conference","17":"tag-economic-forecasting","18":"tag-executive-sop","19":"tag-forecast-accuracy","20":"tag-forecast-error","21":"tag-forecasting","22":"tag-forecasting-metrics","23":"tag-forecasting-models","24":"tag-forecasting-system","25":"tag-ibf","26":"tag-institute-of-business-forecasting-and-planning","27":"tag-inventory-management","28":"tag-recession","29":"tag-sop","30":"tag-sales-operations-planning","31":"tag-sales-forecasting","32":"tag-supply-chain","33":"tag-texas"},"_links":{"self":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/1157"}],"collection":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/users\/772"}],"replies":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/comments?post=1157"}],"version-history":[{"count":0,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/1157\/revisions"}],"wp:attachment":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/media?parent=1157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/categories?post=1157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/tags?post=1157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}