Blue Yonder Case Studies Increased Productivity through Automation

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	Increased Productivity through Automation Blue Yonder

Increased Productivity through Automation

Blue Yonder

Technology Category	Functional Applications - Inventory Management Systems Functional Applications - Manufacturing Execution Systems (MES)
Applicable Industries	Chemicals
Applicable Functions	Discrete Manufacturing Procurement
Use Cases	Inventory Management Manufacturing System Automation
Services	System Integration
Challenge	Asian Paints’ decorative division produces more than 1,600 standard paint product stock-keeping units (SKUs) and many made-to-order (MTO) formulations. This dynamic production environment requires a sophisticated and robust supply chain. Asian Paints applies advanced master planning technologies to decide which products should be produced at which manufacturing plants, incorporating variables such as cost and demand volume, capacity, current inventory levels, environmental requirements and other factors. Asian Paint’s goals were to reduce inventory levels and manual processes, while improving service levels, productivity, overall production and safety stock planning. Read More
About Customer	Asian Paints is a leading paint company in India. The company's decorative division produces more than 1,600 standard paint product stock-keeping units (SKUs) and many made-to-order (MTO) formulations. The company faces a dynamic production environment that requires a sophisticated and robust supply chain. Asian Paints applies advanced master planning technologies to decide which products should be produced at which manufacturing plants, incorporating variables such as cost and demand volume, capacity, current inventory levels, environmental requirements and other factors. The company's goals were to reduce inventory levels and manual processes, while improving service levels, productivity, overall production and safety stock planning. Read More
Solution	Asian Paints uses Blue Yonder’s Factory Planner to manage a wide range of variables, such as the inflow and use of raw materials among multiple possible alternates across multiple alternate vendors and possible production routes. The company typically experiences a “hockey stick” variation in monthly demand for its products and also sees an annual upsurge in demand during festival seasons in various parts of India. Asian Paints utilizes a sophisticated distribution planning system from Blue Yonder to address this variable demand and to move product smoothly to this complicated and dynamic marketplace. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Functional Applications - Manufacturing Execution Systems (MES)

Applicable Industries

Chemicals

Applicable Functions

Discrete Manufacturing

Procurement

Use Cases

Inventory Management

Manufacturing System Automation

Services

System Integration

Challenge

Asian Paints’ decorative division produces more than 1,600 standard paint product stock-keeping units (SKUs) and many made-to-order (MTO) formulations. This dynamic production environment requires a sophisticated and robust supply chain. Asian Paints applies advanced master planning technologies to decide which products should be produced at which manufacturing plants, incorporating variables such as cost and demand volume, capacity, current inventory levels, environmental requirements and other factors. Asian Paint’s goals were to reduce inventory levels and manual processes, while improving service levels, productivity, overall production and safety stock planning.

About Customer

Asian Paints is a leading paint company in India. The company's decorative division produces more than 1,600 standard paint product stock-keeping units (SKUs) and many made-to-order (MTO) formulations. The company faces a dynamic production environment that requires a sophisticated and robust supply chain. Asian Paints applies advanced master planning technologies to decide which products should be produced at which manufacturing plants, incorporating variables such as cost and demand volume, capacity, current inventory levels, environmental requirements and other factors. The company's goals were to reduce inventory levels and manual processes, while improving service levels, productivity, overall production and safety stock planning.

Solution

Asian Paints uses Blue Yonder’s Factory Planner to manage a wide range of variables, such as the inflow and use of raw materials among multiple possible alternates across multiple alternate vendors and possible production routes. The company typically experiences a “hockey stick” variation in monthly demand for its products and also sees an annual upsurge in demand during festival seasons in various parts of India. Asian Paints utilizes a sophisticated distribution planning system from Blue Yonder to address this variable demand and to move product smoothly to this complicated and dynamic marketplace.

Impact #1	Asian Paints has dramatically improved its debt-to-asset ratio, and leveraged its supply chain efficiencies to pursue an aggressive growth strategy.
Impact #2	It has reduced its finished goods inventory from 56 days to 30 days.
Impact #3	This leaner inventory stance was a key factor in the company’s improved cash flow position and its ability to invest in growth-oriented acquisitions.

Impact #1

Asian Paints has dramatically improved its debt-to-asset ratio, and leveraged its supply chain efficiencies to pursue an aggressive growth strategy.

Impact #2

It has reduced its finished goods inventory from 56 days to 30 days.

Impact #3

This leaner inventory stance was a key factor in the company’s improved cash flow position and its ability to invest in growth-oriented acquisitions.

Benefit #1	Reduced inventory levels from 56 days to 30 days.
Benefit #2	Saved $720,000 by reducing unnecessary production.
Benefit #3	Decreased lost sales by 0.3 percent.

Benefit #1

Reduced inventory levels from 56 days to 30 days.

Benefit #2

Saved $720,000 by reducing unnecessary production.

Benefit #3

Decreased lost sales by 0.3 percent.

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Overview

Increased Productivity through Automation

Operational Impact

Quantitative Benefit