HomePublicationsConsultancyILOS Consulting helps companies deal with the risks of raw material shortages by planning demand and automating input allocation processes.
ILOS Consulting helps companies deal with the risks of raw material shortages by planning demand and automating input allocation processes.
A large beverage company was facing a potential shortage of one of its main raw materials. The company's different production units were holding separate discussions about how to utilize this limited resource.
In a 15-week project, the consulting firm ILOS analyzed different supply models, identifying the main decision-making drivers for allocation.
A new planning process was defined, with monitoring of supply and demand. A monthly routine was established, with assigned responsibilities, roles, and performance indicators.
To support the new planning, ILOS created a BI dashboard for data visibility and a Python tool to automate the allocation logic.
project type
Demand Planning and S&OP
Segment
Consumer goods
Structured planning avoided risks in the supply of essential inputs.
Challenge
A large beverage company operating in Brazil anticipated a scenario of raw material shortages. Its internal data was fragmented and scattered across different units, with low automation and poor visibility of demand and supply information. The consulting firm ILOS was hired to solve this planning problem.
ILOS solution
ILOS supported the development of a demand planning process and monthly monitoring of flows and inventory projections. Furthermore, rules were defined for allocating inputs among units in case of raw material shortages, considering market, strategic, and financial perspectives.
Results
The consulting firm ILOS created an algorithm for allocating scarce resources, developing a tool to automate the process of data analysis and risk identification. They also coordinated monthly meetings between production units to analyze the risks of stockouts and excess inventory.