【正文】 Inaccuracy167。 Customer Service levels (line fill rate in $) are at 92% despite target s of % (BIC is 99%)167。 Inventory Turns are 4 (BIC for CPG is 17) 167。al to CPG panies which is not a fair parison in some cases. The parison is meant as a guideline.9Supply Planning – Issues and OpportunitiesIssues Input167。al Canada’s poor forecast accuracy, the purchasing plan does not effectively meet customer’s demands as demonstrated by the numerous forecast modification orders sent to the plants and high inventory levels167。 The purchasing frozen horizons set by the plants seem excessively long and are not reviewed sufficiently. Therefore, L’Or233。 The plants confirm back all ordered quantities since replenishment lead time is used. As a result, L’Or233。 The factories are Product focused rather than Sales/Customer focused. The result is a Push model rather than Pull. L’Or233。 No global supply planning is engaged in at L’Or233。al Sales Company is prescribed where to buy each product and can only look to other factories in cases of shortage / capacity constraintsOpportunityFactory Constraints167。al Canada posting their forecast on the Web and allowing the factories to confirm the quantities they can supply against the forecast in a timely manner167。al Canada processes whereby products are stocked in the US and shipped directly to customers in Canada to reduce inventory levels and costsLong Term167。al Canada has improved their forecast accuracy, they will be in a better position to approach the factories to discuss:167。 Communicating issues167。 Receiving ASNs to give L’Or233。 Develop new policies and education program across L’Or233。 All L’Or233。 The US Factories ought to be allocating stock in ratio to L’Or233。 Encourage the L’Or233。 Ensure fair share allocation in shortage situations since each Sales Company would obtain stock in proportion to their forecast167。 The US Factories should measure and be pensated based on their ability to service all of North America and not just the US VMI167。 Leverage the VMI experience of L’Or233。me)Product Harmonization? Where possible, continue to roll out the process of manufacturing with Final Assembly, whereby products are produced and finished to the point of localization steps Factory Constraints (cont’d)167。al’s global sales, while the US which supplies Canada makes up 28% of L’Or233。al Canada’s requirements are only fulfilled once the US’s needs have been satisfied. There is no formal process to allocate stock between Canada and the US167。 A few key customers have expressed a willingness to establish a VMI relationship, but L’Or233。 The rush to bring new products into the market is causing launch dates to be pushed up with an insufficient buffer. The result is that the supply does not arrive in time to meet the advertising timelines L’Or233。 Many products cannot be harmonized due to local legal requirements including language and DIN s11Order Fulfillment – Issues and OpportunitiesIssues Customer Segmentation and Service Levels167。al customers have been segmented and task forces have been created to work with customers, yet L’Or233。 L’Or233。al from listening sufficiently to Customers’ requirements167。 ATP accuracy is promised due to factories vague confirmations (they only agree to supply product within a months time frame). As a result, customer service reps are unable to share ATP information with customers 167。al no longer widely accepts backordersOrder Desk? Customers must call L’Or233。 Analyze customer profiles and subsequently customize service effort tied to profitability, customer loyalty and purchase history167。 Work with L’Or233。 Determine whether the current order entry process is suitable to meet customer needs or whether a more efficient process is required. 167。al? Technology167。 Formalize product allocation business rules to ensure top customers receive priority in cases of product shortage. Begin by modifying product allocation functionality in SAP R/3 before exploring APS ATP functionalityLong Term167。al has acquired greater ATP information from the factories they could explore APS ATP functionality such as:167。 Multistep availability checking against ATP, product allocation and planned independent requirements12I. Project Scope and ActivitiesII. Overview of Our Supply Chain FindingsI. ProcessesII. Inventory ReviewIII. Maturity ProfilesIV. Organization/ People and Culture V. TechnologyIII. Supply Chain RoadmapIV. Discussion of Next StepsPresentation Agenda 13We reviewed inventory data to assess the effectiveness of L’Oreal’s planning processesData Used167。 Forecast Soldin data167。 Quantity received from plantsPeriodJanuary 2023 – January 2023 (13 months)Products 167。 A,B, and C products for 4 categories (Hair Care, Hair Color, Skin Care, and Cosmetics) Inventory Data Review14Observations1. Long frozen horizons, high minimum order quantities, and inconsistent shipping practices from L’Oreal factories result in high inventory levels and emergency expediting costs (out of scope) 2. The same forecasting process should not be applied to all SKUs. It would be beneficial to reevaluate the logic used for different product demand types. Four main product demand types were observed:– Stable demand pattern – Unstable demand pattern – Stable pattern expect for promotions– Low VolumeNegative inventory 3. Inventory planning practices during Promotional periods result in large forecasting errors and large inventory fluctuations4. Data Issues:167。 Despite not accepting back orders, there is a mismatch between “Shipments out” and “Soldin” for a few SKUs. There is no clear explanation for this. 15Absolute Forecasting Error Category A B C AverageHair Care 21% 28% 66% 39%Hair Color 26% 15% 21% 20%Skin Care 10% 46% 49% 35%Cosmetics 25% 47% 24% 32%Average 20% 34% 40% 32%? As expected, forecast accuracy is hig