Case Study

Understand Customer Requirements Far in Advance of What Was Previously Possible

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“As well as focusing our production capacity on customer needs, the new system has enabled us to understand customer requirements far in advance of what was previously possible.”

Laurent Léchopier,
Demand Management Director and Engine Fasteners Regional Sales Manager, LISI AEROSPACE

Companies use Optimiza to maximise service levels, increase customer loyalty and protect margins. They do this not only by aligning demand and supply processes but also through building, managing and executing a dynamic, agile and responsive demand and replenishment plan.

Optimiza customers align cross-functional teams internally and externally using the continuous improvement framework, and formalise their processes into a structured auditable system.

Demand Planning: Organisations know that forecast accuracy is able to yield a greater equivalent returns on a company’s financials than any other planning activity.

Inventory Optimisation: Optimiza Inventory Planner unlike traditional inventory re-ordering systems, builds a business specific inventory model that takes into account the unique supply, demand and flow characteristics of each product.

Supply Planning: Busy Inventory Planners have little time to validate supplier information, or monitor and prioritise existing orders. The direct results is that orders are placed based on what may be an over or under estimated lead time and potential issues are only identified at the back door.

Understand Customer Requirements Far in Advance of What Was Previously Possible

Company Profile

Lisi Aerospace is a company worth more than $1.3 billion that designs, manufactures and services more than 300 customers in 30 countries. With components and subassemblies of high technical content making the difference in its ability to innovate and sustain high operating performance standards.

Specialising in the manufacture of fasteners and structural components for aircraft airframe as well as the engine of the aircraft. The core business of the company is metal deformation, complemented by heat treatment, machining, coating and assembly.

Challenge

Lisi Aerospace’s service-led project began in 2013, with the objective to achieve a 95 percent on-time product delivery rate across its international customer base.

To get a better understanding of its customers’ requirements, Lisi Aerospace re-organised the structure of its Paris-based customer service team to give them more time to focus on quotations and demand management with the aim of improving the order process. It also sought a best-practice solution to help its team analyse the accuracy of the forecast and orders submitted by customers and improve the speed of manufacture.

Solution

In conjunction with its own internal processes, Lisi Aerospace’s Paris headquarters incorporated Optimiza software into the process, an integrated tool specifically designed to connect demand and supply planning to provide an optimum view of next orders and replenishment plans. This has now been rolled out across the organisation’s European customer base, with full coverage planned across North America, improving Lisi Aerospace’s ability to plan ahead and optimise manufacturing across its different sites.

Results

Lisi Aerospace has successfully managed to reduce the time employees spend working on spreadsheets, enabling them to dedicate more resource to analysing the forecast data before goes into the ERP system. This has improved dialogue and relationship with customers and already helped to avoid the cost of creating unnecessary inventory, including the wrong part or volume of inventory being manufactured due to a mistake in the customer file.

They have also found that customers are eager to work with them to get more personalised and accurate service, which enables them to prepare production timescales ahead of time. In future, Lisi Aerospace expects to reduce inventories substantially with an accurate production planning of customer orders to achieve customer objectives in terms of delivery performance.reduction on inventory holding of 50 percent.

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