Integrated Planning: BABOR Optimizes Supply Chain Processes with add*ONE from INFORM

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Pioneer in professional luxury skin care focuses on precision not only when it comes to cosmetic formulas

BABOR, international provider of premium cosmetics, has opted for a holistic and transparent management of its supply chain processes. With the help of add*ONE Inventory Optimizer from INFORM, the isolated planning steps in the sales, procurement and production departments have been gradually interconnected and transformed into one efficient planning maneuver. Integrated planning combines the strategic and operational management of different corporate departments and coordinates them, ensuring robust optimized processes. The result is a consistently controllable supply chain with significantly increased collaboration and transparency. At the outset of the multi-stage project, supported by the software provider INFORM, BABOR implemented simultaneous master production scheduling (SMPS) at their headquarters in Aachen. In 2016 the company also plans to connect its subsidiary in the United States to the network.

BABOR has made a global name with luxury skin care products on the basis of natural, effective ingredients. The company's supply chain management (SCM) continuously must overcome the notable challenges of restricted harvesting periods and limited shelf lives of some of their high-quality raw materials as well as high customer demand for new beauty innovations. "Short shelf lives and procurement times, as well as highly fluctuating customer demand must be taken into account for optimal and predictive planning. These factors require a high degree of flexibility and transparency", says Rupert Freutsmiedl, Director of Supply Chain Management and member of the Executive Committee at BABOR. "Our employees responsible for planning almost reached their limits having to work merely with the numbers from the ERP system. We needed an optimization software, which could continuously illustrate the SCM processes without media disruptions, and provide us with accurate forecasts for deviations and bottlenecks within the system", adds Freutsmiedl. BABOR has therefore chosen the intelligent software system add*ONE Inventory Optimizer from INFORM for integrated planning and control of its supply chain processes.

Integrated planning strengthens collaboration

The implementation of the add*ONE Simultaneous Master Production Scheduling was the first phase of the project and has already been successfully completed. "SMPS considers the capacitive feasibility as well as the availability of goods on several production levels. The difference between this new concept and the classic one is planning in time intervals, also called bucket planning. This means a rougher, but also more robust planning, which can actually be implemented and ultimately controls the procurement operations with much more accuracy and reliability. So you achieve not only a reduction in inventory, but also a much more reliable and robust supply chain, from the customer order through to the procurement of raw materials", explains Peter Frerichs, Member of the Executive Board and Head of Consulting & Strategy of the Inventory & Supply Chain division at INFORM.

In order to complete the project "Integrated Planning" at BABOR, the sales and procurement planning processes will be fully integrated and optimized with the help of intelligent forecasts from add*ONE. The network planning and the subsequent integration of the largest foreign subsidiary in the United States is planned for 2016. For the project "Integrated Planning", BABOR also created the new position "demand planner" in their company and appointed Dirk Voßen for the job. "This position works as an interface between the sales and operations departments. I am therefore in constant contact with both divisions, so that I can determine at an early stage what is possible from a planning and capacitive point of view and what is not. For us, integrated planning means a collaborative, cross-departmental work, since this is the only way continuous control is possible. Carrying out the individual plans of the single divisions is no longer our only priority: the entire process must lead to an economic result and generate profit contributions", as Voßen, SCM Demand Planner and APS System Project Manager, points out, explaining his new responsibilities.

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