Our expertise | Offer, Demand and Supply Chain Management (ODS® chain)

Background

metis-nos-metiers-ods-nos-competencesSupply Chain is an essential, recognized component of a company’s operational value chain. Its goal is to optimize the use of resources, operational costs and service objectives as defined for markets and customers. It is a creator of added value for the company that has often fostered real competitive advantages.

Because of their broad expertise, combined to an extensive practice, consultants at Metis Consulting can help you tackle strategic and cross functional issues,  or others more targeted ones, such as :

  • Implementing a real S&OP process for the benefit of the sales organization
  • Better plan demand or improve the quality of sales forecasts
  • Maximize planning processes and the management of your product offer and assortments
  • Implement the process with the proper management rules to enhance the supply from your suppliers or to your stores
  • Optimize your inventories and your level of customer service
  • Define an effective and efficient production strategy in terms of organization and business rules
  • Implement a real Make to Order organization for a new product offer

Under intense competitive pressure and faced with increasing levels of customer’s expectations, companies are now developing strategies that are more openly customer centered, offering products with shorter lifespan while catering to larger market through multi-channel strategies.

In this environment, tighter interactions characterize the relationship between product/service offer strategy,  demand management, and industrial and logistics processes.

More reactivity and agility are required everywhere.

An organization and supply chain processes aligned with marketing and sales objectives is becoming essential; this could turn into a real competitive advantage.

To that end, Metis Consulting has developed a unique model and exclusive skills applied in situation of customer centered activities. They aim at aligning product and service offer strategies, demand and supply chain management.

This breakthrough approach is called ODS® chain (Offer, Demand, & Supply Chain). It allows for the definition of relevant demand and supply management processes that should be activated, with respect to product and service offer strategies, the product life span, the intensity of promotional activity and the sales channels or customers that are targeted.

Our expertise

  • Merchandise planning and management
  • Assortment planning and customer centered clustering
  • S&OP, Demand Forecasting, Distribution Planning (DRP)
  • Inventory management and optimization
  • Production planning and scheduling
  • Implementation of an organization for Make to Order
  • Strategic Inventory Modelling and late product differentiation
  • Customer service

Examples of tasks

Worldwide S&OP (industrial equipment manufacturer)

Subject

How to better match demand and supply in a worldwide business (200 subsidiaries, 4 sales regions, 10 distribution centers and 15 production units located worldwide).

Method

Actions on 2 levels :

  • Process and information systems: define S&OP operational processes (cycle time, steps, demand forecast collection and consolidation, workload-capacity balancing, pre S&OP reviews, industrial and commercial data models …) and required information systems. Develop solutions and implement with operations (~60 users WW)
  • Change management directed at top executives : implement executive S&OP meetings involving general managers, sales, supply chain and industrial management with a complete agenda, comprehensive and structured meeting templates

Benefits

  • A more accurate and frequent outlook on WW consolidated demand
  • A fine-tuned management of workload vs. production capacity allowing for on-schedule new product launches, more effective communication with sales and key accounts, optimum inventory levels and better use of available production capacities

Sales forecasts and procurement (Retail)

Subject

In a highly competitive environment, how to reduce in store and distribution centers inventory levels, while keeping a high level of product availability in  sales outlets ?

Method

  • Improve and standardize the sales forecasting processes as well as the computation by the buyers of the net purchasing requirements
  • Select the best software application to support these processes; implement it among 20 central users

Benefits

  • Approximately 12% in inventory reduction (achieved 6 months after implementation).

Transformation in management of product assortments and supply chain (Luxury & Fashion network of 450 stores – ready to wear and shoes)

Subject

In a situation of solid growth on all markets (Asia, Americas and Europe), how to better monitor the WW management of product offer and product assortments and how to maximize operational performance levels (sell-through and inventory level) ?

Method

  • Strategic review of the whole Merchandising and Supply Chains, for both seasonal and permanent products (Budgets, Demand Planning, OTB, Forecasting, Range Planning, Assortment Planning, Buying, DRP, Production Planning, Store Replenishment, …): processes, organization, information systems and KPIs
  • Definition and implementation of a new business model for assortment planning and the management of product flows from plants to stores (combination of push and pull depending on products’ life expectancy)
  • Implementation of the organizations and information systems
  • Support to conduct change management

Benefits

  • A scalable merchandising and supply chain allowing for better management each continent’s growth, while securing a tight WW management of the brand
  • Significant operational benefits in term of stock and sell-through, with an increase of more than € 30 Mio / year