The Challenge and Benefit
Increasing demand volatility has made planning based on historical trends irrelevant or impossible. Hubbell is heavily foreign supplied, yielding increasing lead times, so it needs to cut out as much as possible in the supply chain to decrease lead times to stay as close to the demand signal (have as much visibility into near-term demand) as possible. The objective is to operate in a just-in-time type of environment with a leaner, demand-driven supply chain. Inventory risks in this environment are high, so understanding inventory positions at all times is a necessity.
With such volatility of forecasts and orders, there is a great need to quickly understand the impact of unexpected change, determine the action alternatives and then execute them to minimize or avoid any financial and customer service losses.
Kinaxis helps Hubbell to dynamically align demand and supply. Hubbell Lighting uses RapidResponse to help assess and mitigate supply chain risk and respond to unplanned events.