Demand - Supply Interlock (Largest Contract Manufacturer)

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In this case study learn how BRIDGEi2i helped the world's largest Contract Manufacturer to quantify the impact of demand signal variation on capacity utilization and to build a predictive algorithm to counter demand & supply uncertainties and provision linear Capacity Utilization.

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Demand - Supply Interlock (Largest Contract Manufacturer)

  1. 1. A Case Study in Demand-Supply Interlock The largest Contract Manufacturer in the world Quick Context Objective a. The client builds commercial desktops that are BTO** b. Demand signal volatility and supply uncertainty have caused the Client to deal with non-uniform Capacity Utilization • TBD – the full-scale deployment is on- going Impact • Having an appreciation for addressable and un-addressable problems in a Contract Manufacturing SC allows us to customize our analytical and predictive solutions Key Success Elements Our Approach 4 Months 1 Year Client Project length Length of relationship with client • All data was accessed securely through a VPN tunnel • Weekly customer Demand Forecasts were accessed via SAP • Actual Build Orders were accessed via Client manufacturing systems • Client MRP runs once a week and Shortage reports were built into a database with BOM structures along with Lead-time and inventory • Quantify inaccuracy in forecast signal and assimilate data from demand forecasts and actual orders • Analysis at a Model level over past several quarters • Metrics to quantify impact of inaccuracy • Historical analysis of Capacity Utilization and Material Shortage reports of components identified as challenging • Based on new Adjusted Demand Forecasts from “Demand Reconciliation” analysis & known offender Parts, develop custom Adjusted Supply Forecasts • Adjustments will act as “overlays” on supply forecasts generated by MRP every day Data Management Algorithmic Play Operationalization a. To quantify the impact of demand signal variation on capacity utilization b. To build a predictive algorithm to counter demand & supply uncertainties and provision linear Capacity Utilization * BTO – Built-to-Order

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