Area(s) of Enablement
- Five product lines — consumer and commercial riding lawn equipment and mowers, golf course mowers and aerators, utility vehicles and utility tractors — comprise 100 product families.
- Most products require off-the-shelf availability or consumers will buy elsewhere.
- 70 percent of products experience seasonal demand, with 65 percent of retail sales between March and June.
- Financing incentives encouraged dealers to carry inventory.
- Even with ample inventory, dealers frequently lacked proper product configurations in stock and were dissatisfied with C&CE's on-time performance.
- Enterprise-wide system integration boosted on-time factory shipments from 63 percent to 92 percent while maintaining end-customer service levels at 90 percent.
- During peak season, the company doubled replenishment frequency with no increase in transportation costs, thanks to better planning.
- MIPO automates and streamlines planning and optimization tasks, eliminating manual data entry and human error.
- Aged inventory dropped from $140 million to under $50 million, avoiding the need for product discounts and saving $10 million annually.
- At the end of 2004, C&CE met its $1 billion inventory reduction/avoidance goal, a full year ahead of schedule.
- Savings translated into more than $107 million in positive shareholder value add (SVA), a measurement that positively affects share price.
For more stories of successful supply chain implementations, read the "2005 Supply & Demand Chain Executive 100" article in the June/July 2005 issue of the magazine. Also watch the Today's Headlines section of SDCExec.com every Tuesday and Thursday for more in depth best practices drawn from this year's Supply & Demand Chain Executive 100.