SAP IBP

IMPLEMENTED IBP INVENTORY OPTIMIZTION FOR FINISHED GOODS

PROJECT TYPE

IBP Inventory Optimization

CLIENT PROFILE

CPG Food & Beverage

$6.3B Revenue

DATE COMPLETED

2019

“This will enable us to spend less time gathering data and more time building and analyzing the impact of demand, supply and inventory decisions, along with their financial impact, which support the success of our business.”

-VP of Supply Chain Planning, CPG Food & Beverage

Project Overview

Client Problem

Client’s inventory targets were not being reviewed and were being set on an empirical basis, resulting in increased deadstock, higher inventory costs, and missed customer demand. The client needed a consistent planning tool to help mitigate excess stock risks and meet customer service levels.

SCMC Solution

SCM Connections implemented IBP Inventory Optimization to critically review the inventory targets and optimize them across the entire network. The solution provided enhanced scenario planning and introduced exception management to reduce the manual effort required from planners, while providing increased analytics and insights for executives.

Results

Configured multi-echelon inventory optimization to introduce a network-wide safety stock planning system, reducing inventory costs by $13M.

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