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Stock levels down, service levels up

Grocery and cosmetics import and marketing firm Transmeri has teamed up with another respected Finnish company – RELEX; Europe’s fastest growing supply chain management solution developer.

Transmeri has built a new Sales & Operations Planning process around RELEX forecasting. With the new solution in place Transmeri can now plan its production using more accurate sales forecasts.

RELEX worked with Transmeri to outline the specifications for its new processes based around RELEX’s mathematical forecasting. The aim was that the purchasing process should include the optimization of safety stocks by product and packaging type. The goals were more accurate sales forecasts, lower inventory levels and increased availability. The results have been most promising.

“This was an exceptionally wide ranging project and technically quite challenging, because both the order calculation and the new forecasting elements were implemented at the same time,” says RELEX’s Managing Director Mikko Kärkkäinen. “Even so, the project stayed on schedule and went according to plan.”

“At the same time we managed the client-side integration with the standard Acando SAP package. That was also completed successfully, within the same tight schedule, despite the scale of the project.”

With the project finished on time and with the new system already bearing fruit Transmeri is satisfied.

“Together RELEX systems and our new processes have significantly increased the accuracy of our forecasts. Forecasting for 95 per cent of our products can be handled automatically and the forecast accuracy has improved by about 10 percentage points. That’s played a major part in securing our staff’s commitment to the changes,” says Production and Logistics Director Pasi Berggren from Transmeri.

“Alterations and corrections to the forecasts have fallen significantly as colleagues have grown to trust the forecasts provided by the system,” Berggren continues.

Transmeri now plans to expand its use of RELEX systems to its raw materials planning needs.