Pioneering DSX in Tunisia
MPBS Builds on Early Success
"Thanks to DSX, we have reduced our overall inventory by 10%-one million dinars-even as our sales have increased by 7%. We're aiming to reduce stock by another 15% by the end of 2018-and that's just the beginning." ~Mohamed Sellami, General Manager, Manufacture de Panneaux Bois du Sud.
The Situation: With more than 30,000 products, continually evolving trends and consumers’ increased desire for variety, managing MPBS’s inventory was a challenge. To add complexity, MPBS produced stock based on customer orders and sales projections based on past purchase patterns. They were not yet forecasting.
Challenges: Planners estimated the company's weekly raw materials needs for building each product. After tallying up the data in spreadsheets, it would go to the purchasing department. This approach left the company with serious inventory challenges, resulting in stock-outs, late shipments, lower-than-desirable fill rates, and the need for expedited shipments.
The Solution: With Demand Solutions DSX, the company now produces stock in response to the demand in the marketplace. MPBS has reduced its inventory during a time of business growth, with sales rising DT2.6 million. Executives are now measuring progress against a forecast that's continually updated to reflect the current market reality. Everyone has a better perspective on how to steer the business in the right direction.