S&OP for Cross-Functional Planning.
Arkieva S&OP helps AkzoNobel increase margins and evaluate market changes.
AkzoNobel Surfactants manufactures more than 2,000 chemical products and more than 5,000 active SKUs, and manages millions of dollars of inventory monthly. With such a large variety of products manufactured in six locations on two continents, managing AkzoNobel’s supply chain is an extremely complex task. In 2003, AkzoNobel Surfactants made the decision to implement a formal sales & operations planning (S&OP) process.
To help the company execute its formal S&OP program, AkzoNobel Surfactants turned to Arkieva for their S&OP solution for demand and inventory planning.
“One of the reasons we selected Arkieva is because it is a multi-user solution, which makes the systems available to everyone,” said Bill Shearer, Demand Chain Manager at AkzoNobel Surfactants. “The visibility of our forecast is much better, raising awareness of important issues earlier. We can also very easily create a new forecast error report using Arkieva because reports are pre-set. Productivity has gone up tremendously as a result, saving us at least a couple of days a month.”
AkzoNobel Surfactants’ S&OP process begins with a demand forecast. Next, Arkieva is used to calculate a statistical demand forecast and create all reports necessary to compile a final demand plan. At this point, the Arkieva solution provides a capacity analysis by production unit to determine if there are any production issues, visible to all planners across all facilities. Inventory data from SAP is exported into Arkieva, which provides the tools to manipulate the data and perform detailed analysis.
“The implementation of a formal S&OP process has allowed upper management to be much more aware and involved with decisions in forecasting, inventory levels, supply and demand,” said Shearer. “Arkieva S&OP has helped us to drastically reduce inventory while tracking it more easily. We’ve also implemented an S&OP process in our European facilities, so we have a much more global view of our overall business.”
The improved collaboration and ability to optimize costs globally have resulted in significant savings for AkzoNobel Surfactants. Additionally, Arkieva S&OP has helped the company to drastically reduce inventory while also tracking it more easily.