Eurocell is a leading producer of UPVC windows, doors and roofline plastics with 125 branches across the UK. In an industry hard hit by the financial crisis, the company wanted to drive profitable growth. They identified smarter inventory management as a strategic initiative.
Although Eurocell holds a certain amount of inventory to ensure availability, expectations around its management were not being met. To improve this, they wanted to better align supply and demand to drive down levels without reducing service or efficiency. This meant developing and integrating sales and operations planning across the business.
Adapting our tried and tested approach to sales and operations planning, our team of cross-functional experts developed a structured demand plan, aligned supply performance and improved service by establishing and gaining management team buy in to ‘one agreed plan’. We then identified another 20 inventory-reduction opportunities by analysing critical processes and hosting improvement workshops.
We delivered an 11% inventory reduction contributing to Eurocell’s best first-quarter performance in several years. We also identified additional savings of 90% in transit
and 25% in holding inventory.
To find out how PA can deliver projects with customer driven supply for consumer demands and improved sales and operations planning, please contact us now.