Leyland Exports Case Study
Demand Forecasting and Management, Procurement
Leyland Exports are leading distributors of truck and trailer parts. Formerly the parts division of Leyland Truck and Bus, they have grown significantly, both organically and through acquisition, and are the home of the AmiPart, Gardner Parts and OmniPart brands among others.>
Leyland Exports supply original equipment and pattern commercial vehicle parts to factors and distributors across the world. Stock availability is of paramount importance because their customers expect ex-stock delivery and their requirements are immediate, meaning that even loyal customers will source parts from Leyland Exports' competitors if they are unable to supply quickly. Their suppliers are located in the Far East, Europe and the United Kingdom, and have replenishment lead times ranging from 3 months to same-day. Balancing service levels against inventory value is a key driver of their profitability, which the long replenishment lead times inhibit.
Leyland Exports felt that stock availability of their highest-selling products could be improved, which would minimise lost sales. With several divisions within their business, Leyland Exports wanted to establish a common process between each division's supply chain team that improved visibility across the business and gave them the tools to optimise their performance. With a range of users accessing the system, from sales, supply chain and senior management, it is necessary to restrict sensitive data and functionality.
Entalysis implemented Extensions with Demand Forecasting and Management, and Procurement modules in March 2011. Using Extensions, the supply chain teams improved the stock profile and the visibility has enabled them to work much more effectively with their suppliers, improving delivery performance. The results are
- Stock availability rises by 15% points to exceed target
- Sales revenue up 24%
One year later in February 2012, sales turnover has increased by 24%, largely thanks to the improved stock availability. The stock profile has changed considerably and now consists of a much higher proportion of fast-moving products. Stock turns have improved even though stock levels have increased to support the much higher sales.
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