Consulting Services
Industries
Careers

People are at the heart of what we do

Practical example

Ensuring a power supply manufacturer's production capacity through end-to-end transparency

We optimized the supply chain for a leading manufacturer of power supply solutions to ensure production capacity and meet sales targets. By establishing end-to-end transparency from the end customer to the supplier, we were able to accurately track material requirements and efficiently plan production.

Background

The COVID-19 pandemic had led to a large backlog of customer orders and high inventory levels. At the same time, production capacity was limited by missing parts. There was a lack of transparency in the ERP system, making it difficult to assess production capacity and procurement needs.

Specific task

Our task was to ensure complete transparency regarding material requirements, simulate production scenarios, and systematically identify missing parts. The goal was to automate the management of relationships between customer orders, bills of materials, and alternative components, and to optimize production planning.

KBC's Approach

We developed a data model to simulate production scenarios and optimize inventory levels. By analyzing master and transaction data in the ERP system, we gained insights into the relationships between sales, purchasing, logistics, and production data. We assessed all missing parts in terms of their criticality with respect to components and suppliers and established a targeted working capital management system.

A man, bald, with blue eyes and glasses, smiling, wearing a white shirt and a dark blue suit, standing with both hands in his pants pockets
A man, bald, with blue eyes and glasses, smiling, wearing a white shirt and a dark blue suit, standing with both hands in his pants pockets
Martin Betz
Director

Impact achieved

Thanks to the measures we implemented, we were able to extend the forecasting horizon for production planning from 4 to 12 weeks. Raw material inventory relative to revenue generated was reduced by 15%. We established end-to-end visibility into all missing parts, enabling a critical assessment of performance. Ultimately, revenue targets were exceeded while simultaneously reducing inventory levels.