CASE FILES: Treading Where They Track
With a project running from February 2008 through February 2011, Goodyear Singapore Tyres–in tandem with other divisions of Goodyear Orient Company (Private) Limited–installed a comprehensive and high-yield Advance Planning Optimisation-Demand Planning system with sophisticated business intelligence capabilities.
When it was completed, it was both necessary and timely. In truth, by late 2007, it was becoming unavoidable. With 10 manufacturing locations spread across the Asia Pacific region, business and production executives at Goodyear–‘internal’ customers of Yeo Teck Guan, IT Director, and his team at the company–had found it difficult to accurately manage production output, inventory and delivery to customers.
Although production lines on each site were running at full capacity, production line schedules did not match demands for specific models. This uncoordinated process often resulted in a production plant increasing output for a specific product that they had run out of without realising that the other plants were overstocked with the same model.
Another problem Yeo and his counterparts in business across the region saw was the overmanufacturing of slow moving products that eventually took months to consume while real customer demands for certain ranges were not being met. Due to the lack of visibility, regional supply chain teams were unable to rationalise inventory across their plants.
The delivery process of finished goods was also in disarray. And this caused issues like inventory levels being too high in the manufacturing locations but were depleted in warehouses near customers.
Without an automated and consolidated view of the entire supply chain system, the regional team had to manually retrieve data before compiling them in Microsoft Excel worksheets. This process was extremely tedious and time consuming. Due to the time required to do everything manually, decisions could not be made quick enough for the fast changing landscape.
So the decision to go with SAP Advance Planning Optimisation-Demand Planning module in 2008 was made for the regional Supply Chain team to have a business enablement tool that enabled them to make the right decisions at the right time. The technologies and expertise of Abeam, EMC and IBM were also called upon to make the system even more feature-rich and useful for business users. The end result was a coordinated production schedule for all plants, low inventory levels, and timely delivery of finished goods to warehouse locations in most countries in Asia Pacific, and an organisation that’s ever ready to satisfy customer requirements at short notice.
From the Top. And Bottom.
Right from the start, Yeo worked very closely with his colleagues and counterparts on the business side at Goodyear, including: Jean-Luc Laboucheix, Supply Chain Director-Asia (the business sponsor of the
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