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A WNS Perspective

Key Highlights

  • A leader in frozen foods was grappling with several supply chain challenges, including risk profiling blind spots, inventory shortfalls and lack of visibility into manufacturing performance.
  • WNS collaborated with the client to develop a supply chain optimization framework and a forecast accuracy charter infused with market intelligence. This initiative involved deploying an AI-enabled 360-degree risk intelligence platform.
  • The end-to-end supply chain optimization enabled the client to achieve significant savings, streamline the supplier network and identify potential risks.

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This is our story of leveraging supply chain management analytics, Artificial Intelligence (AI)-driven market sensing, and robust visibility and reporting frameworks to optimize inventory and the supplier network for a leading frozen foods company.

As we know…

Consumer Packaged Goods (CPG) companies encounter significant challenges in managing demand variability, presenting a landscape of complexities unparalleled in other industries. Organizations require accurate assessments to evaluate demand / supply risks, balance inventory levels and navigate the pitfalls associated with the proliferation of costly ingredients.

For sustainable revenue and a competitive edge, CPG companies must invest in supply chain analytics solutions to elevate forecasting accuracy, mitigate risks and future-proof operations.

The client grappled with a vicious cycle of challenges …

To break this cycle of challenges, WNS stepped in as a strategic advisor and co-creation partner…

Collaborating with internal teams (R&D, procurement) and external stakeholders (suppliers, third-party providers). We leveraged our supply chain data analytics capabilities to develop a tailored, ecosystem-enabled solution.

Our approach involved co-creating a framework for supply chain inventory optimization and laying out a charter for forecast accuracy improvement by infusing supply market intelligence. We deployed our AI-enabled 360-degree risk intelligence platform, which included a reporting and visibility layer comprising a front-end data visualization tool for scorecards and dashboards.

Critical aspects of the comprehensive solution included :

Demand Forecasting

  • Predicted accurate future customer demand for Stock-keeping Units (SKU) using an effective combination of qualitative and quantitative data
  • Developed next-generation demand-supply and inventory dashboards to monitor Key Performance Indicators (KPI) at a monthly level, such as forecast accuracy percentage, production volumes and parts availability, among others

Risk Monitoring & Early Warning

  • Leveraged an AI-driven continuous risk monitoring platform, tracking financial, operational, legal / ethical, human and environmental risks
  • Provided quarterly risk briefings to senior category managers and the Chief Procurement Officer to apprise them of the evolving risk landscape

SKU Ingredient Rationalization

  • Identified opportunities for cash savings, reducing / harmonizing ingredient specifications and streamlining the supplier count using AI-driven SKU and Bill of Materials (BOM) rationalization

Inventory Optimization

  • Determined the optimal stock levels for multiple nodes in a multi-echelon network (considering cost and service level constraints) through a dynamic inventory optimization algorithm. This algorithm is capable of adapting to changing demand patterns and lead times

Manufacturing Scorecards

  • Provided visibility into manufacturing site performance across various KPIs with manufacturing scorecards – encompassing safety, quality, production, customer service, finance and sustainability

The end-to-end supply chain optimization enabled the client to…

Streamline suppliers, identify potential risks and respond to market demands promptly and cost-effectively. Establishing KPIs and scorecards empowered leaders to take informed actions for improved operations.

Tangible outcomes included:

USD 

K

+ 

in annual savings through a

 

percent 

reduction in ingredients and supplier base consolidation (to less than 10 suppliers)

-

 

percent

enhancement in material availability, attributed to consistent deliveries of required raw materials

USD 

 

Million+

worth of inactive inventory identified through inventory analysis

-

 

percent

improvement in capacity across plants, driven by enhanced performance visibility from manufacturing scorecards

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