Managing Automation - September 2007 - (Page 43)

Planning Forecasting and Replenishment (CPFR) software from Logility Inc. In 1998, Smead built the first interface between its PeopleSoft ERP platform (now Oracle) and the Logility software. Integrating the two systems meant that ERP production data could be fed automatically into the planning and forecasting system rather than having a business analyst input the data by hand. It took a couple of months to build and test the interface. PeopleSoft and Logility staffers lent their expertise to the development project, which was led by Smead’s IS team. Now, out-of-stocks are all in the past. “We have superior fill rates. We are considered to be one of the best suppliers to our major vendors,” Webb says. Voyager Demand Planning has enabled Smead to improve its forecast accuracy by 15%, even during demand spikes. Smead also uses the system to schedule a plethora of details — from promotional displays and end caps down to planning supplies shipments and setting up machine times. As a result, Smead has been able to boost service levels nearly 100% on all brands with targeted customers. Its customers have responded in kind. In 2003, Office Max selected Smead to receive its Strategic Vendor Partnership Award. The company has clearly succeeded in meeting the demands of its challenging new customer segment. In recognition of these accomplishments, Smead received the High Achiever award in Supply Network Mastery in Managing Automation’s 2007 Progressive Manufacturing awards competition. “In order to stay profitable, we have to keep our costs down. And we have to be new and innovative,” Webb says. Toward that end, Smead has people working closely with customers on categor y management, helping them to determine what product mix they should offer to generate more sales. Smead’s ability to maintain its brand, product quality, and corporate culture while con- fronting change is admirable, according to Maureen Steinwall, a Progressive Manufacturing judge and president of Steinwall Inc., the High Achiever winner in the 2006 Training & Education Mastery category. Using technology, “Smead masterfully navigated the challenge and surfaced as a survivor. This is not simple to do and many companies fail when confronted with the same challenge,” she says. Smead is not a huge player, but it has mobilized its resources to meet the demands of an ever more demanding marketplace. “Our people work well together. We have achieved a lot of recognition for providing value to our customers,” Webb says. ■ “Retail customers have much more erratic purchasing patterns. If anyone makes a move, it has a big impact at the demand level,” says Sandy Webb, forecast manager for Smead. maonline managingautomation.com Photo courtesy: The Smead Manufacturing Co. RELATED ARTICLES: Mastering the Demand Tides www.managingautomation.com/progressive21 The Art and Science of Demand-Driven Supply Networks www.managingautomation.com/supplynetworks The New Crystal Ball www.managingautomation.com/sop2 September 2007 43 http://managingautomation.com http://www.managingautomation.com/progressive21 http://www.managingautomation.com/supplynetworks http://www.managingautomation.com/sop2

Table of Contents Feed for the Digital Edition of Managing Automation - September 2007

Contents Take 1 Europe’s Automation Chiefs Upbeat on ’08 Business Prospects Vendor Coalition Pushes Human Element of SOA Wireless: Users Still Approaching with Caution One Year Later, IBM Shows Plan for MRO’s Maximo Study: More Work Needed to Lure Next-Gen Talent Executive Q&A Notes Cover Story: 2008 Companies to Watch Special Report: The 2007 Progressive Manufacturing High Achievers Progressive Manufacturer of the Year Business Model Mastery Innovation Mastery Customer Mastery Supply Network Mastery Data & Integration Mastery Education & Training Mastery Operational Excellence Mastery Leadership Mastery Transformation: Orchestrating the Multi-Tier Supply Network Integration: The Timeless Quest for Accurate Data Industries: Maintenance No Longer on Schedule Product Scan Advertiser Index Next

Managing Automation - September 2007

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