Aptiv EDS North America

OUR CLIENT

Aptiv is a global technology and industry leader in vehicle architecture, developing safer, greener, and more connected solutions that enable the next generation of autonomous vehicles, smart cities, and connectivity.   Profit& engaged with Aptiv Electrical Distribution Systems (EDS), North America in Mexico. We assisted with the migration of their excess and obsolete business process, from an MS Excel based solution to the Anaplan digital planning platform.

BUSINESS CHALLENGES

Bringing together all the data required to manage excess and obsolete stock was proving a challenge for Aptiv EDS.  Data was extracted from SAP into multiple spreadsheet models. They also needed to gather and consolidate inventory projections from all plants, review, audit and deliver a management report on latest initiatives to manage excess and obsolete stock. The process includes tracking inventory optimization initiatives. The aim of the proposed digital solution was to reduce the process cycle time, remove propensity for errors and effectively support management initiatives to control and manage the volume of excess and obsolete.

Using multiple spreadsheet models was time-consuming, prone to error, with complicated data consolidation. 

SOLUTION

Profit& experts consulted with Aptiv Subject Matter Experts to develop a solution for managing excess and obsolete on the Anaplan Platform. Aptiv subject matter experts provided the logic and data needed by Profit& experts to design and implement an optimized Anaplan solution that would address the issues with the current process.

The central and plant teams have access to a single central source of inventory data. Plants teams update stock projections providing the central team with a consolidated view of the data across all plants and regions. The central team can then focus on reviewing the data from plants and run an audit procedure by plant and region in line with company policies. Once this is completed, the Management report is generated for Management to review and optimize stock management initiatives.

Excess and Obsolete Management

Real-time inventory levels alongside demand forecasts provide planners with clear visibility of the inventory risks that lead to excess and obsolete stock. This has enabled more timely action to mitigate against the build-up of excess and obsolete stock, by delivering faster more efficient analysis at a central level for quarterly reporting.  Disposal of obsolete stock is also being tracked according to policy.

Scenario Planning

Subject matter experts designed the Anaplan E&O calculators according to Aptiv policies.  This achieved time reduction in analysis performed by users at all levels whilst providing clear visibility of E&O inventory, manual error mitigation, forecast and financial planning availability.

BENEFITS 

The business calculated cost savings from reducing time of excess and obsolete inventory identification by half. Aptiv EDS has been able to identify extra value from stock optimization, more timely decisions and additional revenue due to improved order fill rate.

 Automatization of the results and landing pages have made decision making simpler than using MS Excel files. 

Process Efficiency Improvement

Monthly planning, consolidation, adjustments, approval and reporting process time has been reduced.   Efficiency improvements are summarized in the table below.

The central team now spend less time consolidating and manipulating spreadsheet data, and more time working through scenarios to test different strategies for stock management, such as different ordering volumes and timings, comparing forecasts with actual demand to identify trends, or the early detection of excess stock.