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Case Studies
Today every company is challenged to match product offerings with customer demand to maximize product availability at the highest profit margin. The following case studies provide detailed examples of how Automotive, High Tech and Industrial Manufacturers have leveraged Emcien's Demand Driven Product Management solution. Regardless of industry, all our customers benefit from the ability to help increase product availability and grow margins, while maintaining an optimal product mix with the lowest supply chain cost.
Automotive OEM
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- 25 major product lines across a mix of cars and trucks each of which may have 75,000+ possible build combinations
- Shortening product life cycles
- Unprecedented product segmentation means lower volumes for each model
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- Used sales transaction data to determine fastest moving product mix
- Replace spreadsheets with a systematic method for product management
- Forecast of simplified product mix with build combination detail
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- Improved sales velocity and dealer turns
- Finished goods inventory lowered by 12%
- Dealer inventory costs reduced by 50%
- Product line margin increased by 2%
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Computer Manufacturer
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- Analysis for the one product line with over 2 million customer orderable combinations
- Assemble to order, pull operation
- About 1,000 unique parts
- Rapid product depreciation and parts obsolescence
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- Used customer sales data to optimize product mix
- Replaced spreadsheets with a sustainable product management process
- Automated product mix optimization by market niche – retail, government, etc.
- Option trade-off and up-sell analysis for margin maximization
- High accuracy forecast incorporating feature group buying behavior
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- Reduce the # of unique parts by 10%
- Improved product availability led to increased profitability
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Tractor Manufacturer
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- Tractor orders consisted of 32 - 45 features each with numerous options across multiple models
- Highly seasonal demand pattern
- Demand for feature mix varies dramatically across regions and continents
- Poor product availability, excess inventory, long lead times and poor asset utilization
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- Dealer and retail orders to optimize standard packages
- Shape demand with high availability on standard packages
- High accuracy forecasting based on feature grouping customer choices
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- Captured >60% demand with 8 standard packages vs. original 25 standard packages with <12% match rate
- Dealer inventory dropped from 10 months supply to 5.5 months supply
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