Case Study
Supporting Company
Altro Group plc
The Challenge
In today’s globalised turbulent business environment, emerging markets and economic downturn, the supply chain is becoming increasingly complex and being largely extended. As this complexity and chain length grow, visibility through end-to-end supply chain is deteriorated. One of the themes of this research focuses on identifying key elements in creating global planning capabilities for multinational companies, such as a centralised planning system.
The Outcome
A combined approach based on different segmentation theories is devised, and developed a framework of three segmented demands, with tailored practices being suggested for each of them. The effect of a segmented supply chain is empirically tested at Altro, and achieved quantifiable benefits as just under 50% of the inventory is expected to be eliminated. This tool adds to the theory and provides practical implications to firms for effective planning and control.