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Smaller means smarter

Toplogic is not the biggest company offering inventory optimisation but we do implement fantastic solutions together with our partners. Toplogic is a small company and being small means more flexible and more personal. We really get to know our customers and their challenges. This enables us to implement smarter solutions on the total scope of demand planning and inventory management.

All this leads to a long term, in-depth relationships with our clients based on sustainable benefits.

Ever since 2005 Toplogic is a Value Added Reseller for Barloworld Supply Chain Software. This partnership gives us access to an international network of supply chain professionals and state-of-the-art software.

Royal  Gazelle – Implementation Optimiza Demand Planner

Royal Gazelle stands for many years of Dutch bikes with high quality. Gazelle was founded by Willem Kölling in 1892. Until then Willem was a postman in Dieren. He ordered one bicycle in the UK and knew immediately that this new type of transportation would be a success. As a result of high demand Willem asked Rudolf Arentsen  (who was a blacksmith) to start producing bikes together.

There has been many changes through the years. The business started by selling 3 bikes back in 1892 and has now become a company with a leading position on the Dutch market and presence in a number of exportmarkets such as Belgium, Germany and Denmark.

Every year the assortment of bikes changes. New models and different colours are added to the assortment and models from previous years are discontinued. The existing sales history can not be used as such for the demand forecasting. A new bike and or a new colour does not have any sales history.

The long leadtimes of components, combined with the fact that the production of a certain model changes every year is the main reason for a complex but yet important process of demand planning. The first definitive version of a Demand Plan is already a commitment for a large part of the total yearly volume.

During the collection year there is a clear need to follow up actual sales versus forecast so that necessary changes can be made as early in the process as possible. This reduces the risk of stockouts as well as the risk of excess inventory of discontinued bikes when the collection year has finished.

For Gazelle we configured the Optimiza Demand Planner with a pyramid structure that makes it possible to forecast the demand on an aggregate level.  This primary forecast level is the bike model. We then split the forecasted demand to the various bikes within the model. The outcome of this process is a Demand Plan that needs to stay up-to-date continously. This is done via the Optimiza Demand Planner and is based on the infeed of orders from dealers, Point of Sale data and a library of demand profiles from recent collection years.

“To be able to respond to possible changes in expected demand is very important for Gazelle. With Optimiza we are now able to identify changes and convert this into a well-considered Demand Plan” says Gerco Oosterink, Manager Demand & Supply. “We have choosen for the Optimiza Demand Planner to increase our forecast accuracy and subsequently to increase the servicelevel to customers. The servicelevels to customers is the absolute number one priority. During the first months after implementation the forecast accuracy on model level has increased from 60% to more than 70%. Obviously this has also positive effects on inventory levels of finished goods and components.”

Smarter forecasting

The functionality we offer for demand forecasting on product group level puts you in the driver’s seat. Seasonality, trends and your promotions can be determined at the right level and translated to a forecast for individual items.

Toplogic uses a forecast pyramid to which you can add intelligence. For instance on a level of region, accountmanager or distribution channel. It is up to you to configure it to suit your needs.

Any differences are made visible through the Key Performance Indicators (KPI’s). Create competitive advantage by identifying deviations in demand on the right level and at an early stage.

Please feel free to contact us for a demonstration on how we can make your demand planning smarter.

People manage inventory

And only people create tailor made solutions. Toplogic values the personal contact with customers and takes the time to really get to know the special needs of each customer. We implement best practices and give recommendations on supply chain management issues. This also includes Sales and Operations Planning (S&OP). We make use of the six sigma methodology and deliver hands-on training on advanced inventory management.

Define → Measure → Analyse → Improve →  Control.

Ask us how!

Artitec – Controlling the supply from South East Asia

Being a specialst in door hardware Artitec supplies a number of unique products they design themselves. End-customers are based in more than 30 different countries.

A number of suppliers are based in the Far East. The leadtimes are between 3 to 6 months. In order to maintain a high service level it is necessary to have a safety stock level that takes into account the relative long leadtime as a risk factor.

At the start of the project we put together an inventory model that considers the above. Also we had to face the fact that many products have a minimum order quantity. The most relevant Key Performance Indicator (KPI) is “Days of Supply”. For some products the minimum order quantity lead to an unacceptable high “Days of Supply” and we found ways to reduce this risk.

After various discussions it appeared that products that are being produced in the same factory and have enough similarities could be grouped into one productfamily. It was agreed with the supplier that  only one product within the productfamily has to respect the minimum order quantity. All other products within the product family can be ordered according to the real needs as long as they are ordered together with the lead item.

In order to succesfully apply this strategy the following question has to be answered every single time orders are placed. For which product should we accept the minimal order quantity, which product is the lead item. In other words for which product is the “Days of Supply” compared to the preferred replenishment cycle  the most favourable. This strategy has been implemented as an automated process.

This replenishment strategy has reduced the excess inventory caused by minimum order quantities to an absolute minimum.

Control your inventory

Toplogic stands for smarter inventory management. We achieve this by accurate forecasting and measuring the supplier performance.

We believe in the importance of stock turns and service levels. Our software simulates different scenario’s and delivers a realistic inventory model. As a result you will receive optimal replenishments.

Toplogic implements, delivers consultancy and safeguards long term solutions. We make use of pareto classification, management by exception and our Optimiza software. We also believe in a personal approach and for us every business case is unique.

Call us today and we will inspire you.

Martens Kunststoffen – Implementation Optimiza Inventory Planner

Martens Kunststoffen, part of the Royal Martensgroup, is a leading manufacturer and supplier of plastic pipe and tube systems. The general public knows the products from the plastic pipes for electricity for sale at the Do It Yourself (DIY) shops.

In addition to a big assortment of plastic pipes for sewerage, electrical fittings and rainwater pipes Martens supplies various other products to the DIY channel. This ranges from sanitary fittings to roof covering and from sun screens to buckets. The broad selection of products gives retailers the opportunity to get an important part of their supply from only one vendor (one shop stop).

High service levels are an important aspect of the defined strategy to offer customers a broad assortment. In order to deliver ex stock Martens uses the Optimiza Inventory Planner. The safety stock and the maximum stock levels that Optimiza calculates are converted into recommended orders for purchasing and production. These recommended orders are converted into a production plan and purchase orders for various vendors.

Martens has to deal with significant seasonality. There are big differences between the various  seasons (summer versus winter).  However the production capacity is limited to a maximum. That is why the minimum stock levels Optimiza calculates for a number of products during the low-season are higher than you would expect based on the short time forecast. As a result the peak demand during the high-season can be fulfilled without stockouts and without expensive increase in production capacity.

With Optimiza Martens maintains servicelevels of more than 99%. In addition to that staff involved with purchasing and planning has been reduced.

According to Jasper Mes, Teamleader IT Martensgroup, the choice for Toplogic and Optimiza was based on the personal attention Toplogic had for the business case and the ability to convert this into a smart inventory model. Besides that the extended functionality of Forecast Pro played an important role.