# Meeting Notes 7/5/21 (Lukas)

Meeting 5/5/2021

Company context:

- Famous for cat and dog vaccines

- Growth target of 60% for 2021

Pain points/Objectives:

- Scattered data systems - no integration between the sites

- Improve forecast for Mexican clients → target of 80% would be fantastic (short term: 70%) → causing stock outs, high level of backorders of 10% of Sales → mitigation strategy was to increase stock

- Stock reduction target: 2020 to 2021 stock of 0% with 20% more products

- Efficiency of the planner due to most Excel work

Supply Chain:

- Biggest production in France, smaller production sites in Mexico

- A lot of CMOs

User background

Nick Neuman:

- Danish, lives in Mexico

- Experience in Siemens, Unilever, Philip Morris

Other users:

- 1 Demand planner for all Mexican products

- 1 Import planner for the Vauvert HPM

Data/ERP

- scattered ERP

- No problem to deliver 2 years of demand data

- Quality of constraint should be good

- Is working with a key stakeholder for global ERP roll-out (3-4 years horizon)

- All IT support is in France

Potential Scope: Vauvert France: Most complex with HPM

- PO is placed on full container

- 48 SKUs, low margin products

- Forecast Accuracy of 70% (last period dropped to 60%) → heavy time investment AND we want to reduce inventory

- 3-4 months safety stock → EUR 4m$ revenue per year = 1,5m€ total inventory → 10% of sales but 30% production effort

- Product is sold via MX Distributors only

1. Demand Planning

- 10-15 of MX distributors are sharing what they sold (and plan to sell) + inventory via Excel

- Different for direct customers:

- Branches: We get their stock, we get their forecast → currently placing POs based on safety stock

- Customers have monthly sales quotes → overstocking at the customer

- Sales is starting to collaborate stronger on the demand planing

- Health and medicine is hard to forecast

2. Stock Management

- Safety stock is updated yearly

- No space in the warehouse anymore - he has outsourced part of this warehousing

3. Supply Planning

- Since mid 2020, there are capacity contraints

- Mexican factory
  - We are doing monhtly forecast
  - Production Planner updates MPS with 3 freeze period (slush period)
  - MRP Planner places orders based on Safet Stock

- Supplier Carros France is most advanced, delivers for the whole world, planning per lot and then distribution to each customer
  - We dont use POs
  - They have visibility on Demand, Stock and Backorders
  - Same ERP system
  - Not very dynamic, most backorders on that supplier

4. KPIs/ Metrics

- MAE Forecast Accuracy on product level improved from 55% to 65% (in 2020 in 55% for M-3), April with 70%