Tyre Manufacturer Drives Out Obsolete Inventory to Save $10 Million
Challenge
Tyre and wheel manufacturer The Carlstar Group wanted to transform decision-making across its business.
Existing methods of relying on ERP-generated data, spreadsheets and rumour meant business-critical decisions were being made based on unreliable information. Too much time was being spent gathering, normalising and distributing poor-quality data from disparate systems.
The manufacturer wanted greater insight and visibility across its supply chain, which would enable better and faster decision-making that was driven by accurate and timely data.
Solution
With Logility’s advanced analytics platform, The Carlstar Group has far greater visibility of its sales and operations performance. With accurate data collated into one easy-to-use digital platform, the business is able to make coordinated decisions supported by a single version of the truth.
The manufacturer has a deeper understanding of customer buying habits, which fuels more collaboration between the business and its customers. Improved business visibility allows management to spot trends earlier and make more considered, data-driven decisions.
Impact
Logility is now integral to The Carlstar Group’s sales and operations planning (SO&P) processes.
Better visibility of obsolete inventory has saved the company $10 million, while better visibility into the cause of past-due orders has driven the value down by $11.5 million. Thanks to the granular view of individual customer interactions that the Logility platform provides, the company has also reduced customer cost-to-serve.
The Carlstar Group isn’t stopping at these improvements. The manufacturer aims to continue to refine its reporting – and expand its use of Logility products – so it can transition from reactive responses to proactive decisions based on accurate information across even more business activities.
