The implementation of the RELEX platform kicked off in May 2022. SBS’s primary goals were to reduce inventory levels, boost forecast accuracy, and automate processes. RELEX Solutions offers a supply chain and retail planning platform that leverages data to provide insight that can help supply chain organizations ensure product availability, reduce excess stock, and boost ef ciency. The system can create a digital twin, or virtual model, of a company’s physical supply chain, incorporating information on suppliers and other business partners, as well as manufacturing and distribution points. Companies can run advanced scenarios to gain visibility into their operations today, as well as into the future. While users access these capabilities through a uni ed platform, they can also be delivered modularly, says Madhav Durbha, group vice president, consumer product goods and manufacturing. A company can activate each module as it makes sense for its operations. ILLUMINATING THE SUPPLY CHAIN The uni ed platform is key, given a common challenge in boosting supply chain effectiveness: the silos that form within organizations. For example, despite everyone’s best intentions, the data associated with the logistics, manufacturing or procurement functions tends to remain separate, Durbha says.
Adding to the complexity, SBS obtains much of its inventory from Asia. This can mean a manufacturing lead time of three to ve months, along with at least two months in transit. By ordering so far out, SBS could be overstocked on some products. At the same time, an unexpected spike in demand could lead to shortages. Because the previous system wouldn’t always capture the change quickly, planners often were unable to adjust their orders. Instead, SBS spent money expediting shipments to ensure it met its commitments to customers. “We needed more than a step change; we wanted a game changer,” Larsson says. He and his team researched and engaged in calls and demos with about 10 providers of demand and supply planning systems. RELYING ON RELEX RELEX Solutions—the name combines “retail” and “excellence”—quickly rose to the top. Among other key qualities, the RELEX platform has the ability to handle large numbers of inventory items and multiple locations. The RELEX system can provide both item-level details, as well as aggregate reporting on, for instance, total inventory projections heading into the new year. The ability to customize the RELEX solution also appealed. “They could customize more or less anything we asked for when it was needed,” Larsson says.
Not only did these tasks consume time, but because the system was dif cult to use and failed to quickly capture changes in demand, SBS often held more inventory than was optimal, if customers lowered their estimates. Some customers’ long-term forecasts start out high; they then lower their estimates as the dates grow closer. “In the past, we didn’t have a way to analyze and massage that forecast and make it more realistic, so we would buy to the higher forecast,” Larsson says.
Streamline Inventory,
Free Up Capital THE CHALLENGE
With more than 15,000 SKUs and a global supply chain, SBS faced challenges with excessive inventory and low forecast accuracy. The wholesaler’s previous inventory management and forecast solutions weren’t able to provide timely, ecient, and accurate inventory management and forecast functions. This often resulted in inventory levels that were higher than necessary, which cut into working capital. THE SOLUTION Partner with RELEX Solutions and implement its unified supply chain and retail planning platform. The project kicked o with a clear set of goals: reduce inventory, improve forecast accuracy, automate processes, and ensure ease of use.
THE RESULTS More informed supply and
demand planning has helped cut inventory levels by about 29%, freeing working capital. Automation has reduced planners’ workload by about 15% each, enabling them to more quickly adjust to market changes.
Specialty Bolt & Screw (SBS), a leading U.S. distributor in the fastener industry, achieved significant improvements in supply chain management by implementing RELEX and transitioning from a centralized planning system to a global planning organization.
192 Inbound Logistics • January 2025
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