Industry
Supply Chain Management

ARaymond

Integrated planning to anticipate the capacity and ensure the service provision in a global and integrated context

Strategic challenge

Founded as a family business in 1865, ARaymond produces fixing and assembly solutions for automobile manufacturers and other leading suppliers. Being a market leader on the automobile market, the ARaymond Network has progressively applied its expertise and competences to new markets (industrial, energy, agriculture…). In 2012, ARaymond, which has set up 34 structures in 24 countries, achieved 94% of its sales internationally and a turnover of 840 million euros.

ARaymond wishes to provide its customers with the service levels they expect in this highly competitive sector. It must be concluded that this service level has not been guaranteed on all activities and that the urgent measures required to reduce the delays in delivery have been extremely costly. In fact, Möbius confirms that certain activities were not successful in meeting their service objectives. Meanwhile, the different activities have led to significant exceptional costs due to the handling of emergencies (express transport, interims, non-absorption of fixed costs).

Approach

1.Analysis of strengths & weaknesses

  • VSM has been carried out on all its activities
  • Statistical analysis is in place (rate of service, stock, forecast accuracy…)
  • Contact with the various managers (supply chain, commercial, purchasing, production)
  • Development of a Business Case

2. Stock optimisation: definition of security stocks & target stocks

  • Segmentation of each article according to the product life profile
  • Definition of a strategy per article category, plus the implementation of specific parameters for each category
  • Calculation of security stock and definition of target stocks

3. Implementation of a forecasting process

  • Definition of a process to manage demand in both the medium and long term
  • Definition of needs tool to implement an APS
  • Implementation of the APS and configuration of the rules in calculating the forecast
  • Training of users in the principles of the process and the tool installed to generate the forecasts

4. Implementation of medium-term planning assisted by a PDP

  • Definition of needs tool PDP for medium-term planning
  • Creation of a PDP tool adapted to the client’s constraints, and personalised to the particular requirements of each activity
  • Training of users in the principles of the PD and installation of the tool
  • Follow-up and support (improvement, resolution of problems) with regard to the tool

5. Implementation of the S&OP process

  • Definition of the target S&OP process for all activities
  • Definition of key indicators and continuous support (forecasts & long-term planning)
  • Attendance during first monthly meetings to guide those involved in their new roles

Result

Successful implementation of the global S&OP process

  • A medium and long-term vision aligned with the strategy
  • Monthly S&OP meetings allow decisions to be taken at director level regarding: the period of closure, investments, sub-contracting, workforce,…
  • Better demand management thanks to more accurate forecasts
  • Better anticipation of planning thanks to PDP

Measurable results

  • Service rate: 97% (and close to 95% on all activities)
  • Forecast accuracy at 2 months: 85%
  • Reduction of emergency running costs by 80%.

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