Cookware manufacturer optimises inventory control using Dynamics supply chain data

Cookware manufacturer optimises inventory control using Dynamics supply chain data

Le Creuset is implementing an Inventory Optimiser solution from provider, AGR, in order to improve its inventory management and demand forecasting capabilities. The aim of the implementation is to reduce stock holding, while still providing high levels of product availability and customer service.

Prior to selecting AGR, Le Creuset was carrying out limited inventory control and forecasting calculations using data from its Microsoft (MS) Dynamics enterprise resource planning (ERP) system in Excel spreadsheets.

Gavin Wheaton, operations director at Le Creuset, explained: “Having invested in Microsoft Dynamics, we could see that we had a huge area for potential improvement in our inventory management and forecasting capabilities. We looked at a number of products and AGR appeared to be exactly what we were looking for in terms of straightforward implementation, integration with Dynamics, excellent functionality and ease of use.”

Updating supply functions in time

The goal of the project is to reduce inventory in the warehouse and at the same time to increase product availability. “We had too much stock in the warehouse, but were often out of stock on the products we actually needed. We also had no visibility of stock in our other 20 sites around the world, which could have helped us be more responsive and efficient. We needed to put some standard operational processes in place so that we could work in a more systematic way. AGR has shown us that their product can do this, as well as save money through lower inventory and increased business due to better forecasting and product availability,” said Wheaton.

He added: “We anticipate an immediate reduction of 20% of our inventory, while simultaneously improving product availability and customer service”.

Implementation of the system has begun and it is due to be live and integrated with MS Dynamics by June 2010. Wheaton concluded: “We are already surprised and impressed by the simplicity of implementation, despite the fact that it is clearly a very powerful piece of software. It looks like we are going to enjoy that very happy and rare combination, particularly when it comes to software systems, of low investment and high return.”