Cannondale Tackles Demand Planning Cycle

Bicycle manufacturer seeks to eliminate excess safety stock, lower inventory levels with Webplan solution to manage changes in demand

Bicycle manufacturer seeks to eliminate excess safety stock, lower inventory levels with Webplan solution to manage changes in demand

Ottawa, Ontario — June 18, 2004 — Bicycle manufacturer Cannondale has deployed a demand planning solution from Webplan in order to manage constant changes in product and customer demand and move the company toward eliminating excess safety stock and lowering inventory levels.

Bethel, Conn.-based Cannondale Bicycle Corporation has its bicycle factory in Bedford, Penn., as well as subsidiaries in Europe, Japan and Australia. The company required a solution with global visibility on all plant inventory levels and supply schedules in order to better manage changes in product and customer demand.

Prior to deploying the Webplan solution, Cannondale managed the problem with manual processes including combining various Microsoft Excel spreadsheets before being able to view a picture of their business. But by the time the correct individuals were collected to review the material; the data would have again changed. The inefficiencies of this approach required excess safety stock to act as a response management "buffer" to meet customer demand.

"With new bicycle models being released each year and with facilities spread across the globe, we require real-time collaboration and what-if analysis tools to rapidly and effectively anticipate and manage change, said John Nafis, manager of supply chain at Cannondale. To address this challenge, the manufacturer opted to deploy Webplan's RapidResponse solution.

Webplan said that RapidResponse enables manufacturers to anticipate potential problems, review multiple action alternatives and align operations to master the reality gap. The RapidResponse architecture connects to front- and back-end systems and supports a continuous flow of information across multiple sites.

"Manufacturers face unprecedented business challenges today due to increasing customer options and cost pressures", said Randy Littleson, vice president of marketing at Webplan. "The ability to effectively and efficiently respond to ever-present changes gives manufacturers a competitive advantage in terms of costs and customer satisfaction."
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