Customer meeting 23.07.

Attendees: Jean-Marc, Jean-Pierre

Questions:

• What did you mean by, we need a simple tool?

• How many products do you have on stock vs. forecasting?

• All products on all sites?
  • They define the "central range" which defines the products that the CW has to hold
  • Each affiliate can define their own range, either less or even more than the "central range" → forecast is only done for the "central rang"

• Why not optimize central warehouse?
  • Focus is affiliate because they dont have capacity
  • Central warehouse has a lot of resources
  • Forecast on affiliate sales is what matters more → our supply is pretty reliable

• Can you provide historic stock data
  • Stock data is in SAP → only monthly for past 5 months
  • For France, we are downloading the stock level every day for each day since March for a project → France has better FC Acc numbers but maybe on SKU level there are more problems

• Data cleaning:
  • Sometimes they have Elephant orders
  • For times of stock-out: We use transaction in SAP and calculate number of days for specific product per year and allocate lost sales based on average sales

• ABC/XYZ:
  • Based on quantity volume 80%/15%/5% ; XYZ based on shipments
  • Performed twice a year → sufficient
  • We are applying different models based on the classification → If you have do that for us, we don't need classification

• Hierarchy: Country/ Warehouse/ SKUs

• Seasonality management:
  • We try to remove the Seasonality from the historic data in order to have a flat history and apply regressional model

• Sales people input (every two months)
  • We do planning buy class centrally because we expected the affiliates to do the same → this is not happening, they only plan globally
  • There is one country that has one main customer, the others plan on country
  • New products are planned separately
  • Final numbers are discussed together and final number is agreed (via visual review on PowerBI)

• Safety stock
  • Using MRP type that recalculates SS and ROP monthly based on 12 months → always late because we do not apply seasonal model
  • We are running a project for better calculation of SS using future forecast: POC with France (5 sites) ended in June with consulting company (internally)

• Capacity planning → on the supply side (currently done monthly)
  • Romania plant can produce 16t per week → we check the consolidated volume for that week for that supplier
  • We are doing some added-value in the central warehouse → I need to know how many people to deal with those