BridgePoint

The Company

World’s largest winemaker

The Challenge

Determining the ideal inventory based on existing supply chain parameters and current demand

Methodology

A rigorous interview, data collection, modelling and testing model was implemented as follows:

Collect all data in all existing systems

Structure over 1,500 active SKUs by category and other sub categories that are available within the systems

Link Parent SKUs to Child SKUs & determine lead times for each SKU

Collect commercial and financial sales forecast & align numbers

Collect Forecast Accuracy (MAPE) by Category by region; determine schedule attainment by plant by category

Confirm parameters to use for safety stock modeling

Propose and align on best suited statistical model enabling ideal inventory

Build model and deliver inventory ($ and volume) by month

Optimize model to allow for changes in input such as schedule attainment, forecast accuracy and customer service level by category by region and deliver inventory & production ($ and volume)

Data & Report validation – Testing

Compare model forecaster ending inventory actual inventory

Results

A $30MM opportunity was identified in inventory while maintaining the current service levels