One of the world’s leading CPG companies was operating with a high minimum order quantity (MOQ) in their master data that was greater than the demand generated by their planning optimization engine. This was leading to excess inventory. In addition, keeping both safety stocks and time parameters during the planning parameters resulted in excess ordering in material requirement planning. This, in turn, increased excess stock levels.
Further analysis revealed the lead-time between the contract and the material master data was not in sync, which created a difference in material planning vs. execution. In some cases, this led to excess inventory, and in others there were shortages. Overall, these data issues cost the business over €4 million in excessive stock for a single mid-sized market alone.
Capgemini undertook a vigorous data cleansing process to correct unclean data, further enhancing data quality through a data quality tool developed specifically for our client. This led to:
- 90% improvement in first time right
- 95% improvement in data accuracy to 95%
- Reduced stock outs and distribution replenishment failures
- Synchronized master data availability across all target systems
- Elimination of process failures arising through MDM.