Nissens faced significant challenges in their S&OP process, using manual spreadsheets that hindered efficiency and business growth. With their mind set on transitioning from a people-dependent to a process-driven approach, Nissens turned to Optilon for a robust solution.
CHALLENGE
People-dependent and inefficient planning
Nissens were facing substantial challenges in their S&OP planning. Many tasks were done manually using spreadsheets, which slowed them down and hindered growth. This manual approach also made it difficult to adapt to changes and make improvements.
Nissens needed a solution that allowed them to plan their sales and operations more efficiently. They wanted to increase their forecast quality to optimize stock levels in their warehouses and provide better service to their customers. It wasn’t just about making things run smoother; it would also be an important step to refining their planning policies.
To achieve this, Nissens knew they had to move away from a people-dependent to a more process-driven approach. It was time to find a robust, sustainable, and reliable solution for their sales and operations planning.
SOLUTION
A smart system for Sales & Operations Planning
After evaluating a pool of candidates, Nissens invited a select few supply chain partners to present their solutions. After analyzing the pros and cons and engaging in discussions, Nissens chose Optilon, whose S&OP system best matched Nissens’ business needs.
Collaborating closely with Optilon’s dedicated team, Nissens shared valuable insights about their process, paving the way for Optilon to start the implementation phase. During this stage, Optilon built a customized solution tailored to Nissens’ unique business needs.
The implementation phase went smoothly. Optilon provided Nissens with structured files detailing the information required for the system. Nissens then extracted and shared data files with Optilon.
An extensive test period proved valuable
Nissens, together with Optilon, devoted over six months to rigorous testing. This allowed them to track and validate outcomes and ensure their new system aligned with their business goals. As some product groups would sell more during specific seasons, they focused on optimizing forecast accuracy and determining minimum stock levels for these groups. The system was set up with multiple individual season keys and forecast models tailored for each specific product group or even item number.
RESULT
Results and benefits of Optilon’s S&OP solution
As with most big changes, it took some time for Nissens to bring the organization on board. Listening to and getting feedback from the planning team was an important part of building confidence in the new system. But once everyone embraced it, the benefits became clear.
Nissens significantly reduced complexity in their planning department. In contrast to their previous system, which relied heavily on a single individual for manual updates, the new system truly transformed their process. Previously, the weekly task of adjusting reorder points, minimum stocks, and forecasts was laborious and time-consuming. Now, with improved data accessibility, Nissens’ system remains consistently updated.
Nissens discovered not only newfound efficiency but also other unexpected benefits. The shift from a high-risk, people-dependent setup to a process-driven one also aided digitalization and a shared perspective among team members.
MAIN BENEFITS
- Optimized sales planning
- Enhanced operations planning
- Improved forecast quality
- Optimized stock turnover
- Increased growth
- Enhanced efficiency
The new system has significantly enhanced Nissens’ S&OP processes, improving forecast accuracy, optimizing stock turnover, and ensuring OTIF performance. A huge benefit for the company is that it aligns with their ongoing digitalization efforts. Nissens has been able to integrate relevant data into their BI system and now gets a full view of everything across the organization. They can share real-time insights, whether dealing with warehouse availability challenges or showcasing their projected trajectory. This allows them to present a clear short-term outlook, ensuring everyone is on the same page, and a long-term perspective, providing a roadmap for the company’s collective future.
Increased growth and transparency
The new S&OP system has also played an important part in supporting Nissens’ business growth. In 2021, Nissens acquired a new company, which doubled their planning scope from 8,000 to 16,000 items, achieved with minimal additional resources. By sharing information with suppliers, purchasers, warehouses, and the finance team, they have been able to make more informed decisions and secure the necessary resources for sustained growth. This strategic approach has not only optimized Nissens’ internal capacities but also enhanced their overall operational efficiency.
Embarking on this sales and operations planning journey, integrating an efficient S&OP process that works has truly paid off for Nissens. It has brought value across the entire organization and will continue to support their business goals, also in the future.
About Nissens
Nissens is a leading manufacturer of essential thermal system components for the automotive industry. The company supplies the global aftermarket, offering a range of products covering everything from fast-moving to exotic parts for European, Asian, and American brands. With more than 10,000 products, Nissens has one of the most extensive selections of engine cooling parts in the industry.
Are you struggling with your S&OP setup?
Are you relying on spreadsheet programs such as Excel or rule-based processes in ERP systems to manage your S&OP? Have you come to the conclusion that these tools are not sufficient for supply chain optimization and critical business decisions?
With a track record of over 1,000 successfully completed projects and a 30-year integration heritage, Optilon is a trusted supply chain optimization partner.
Book a meeting with us to discuss how we can help you create a tailored S&OP solution that aligns with your specific needs and future business goals.
