Hubbell: Supply chain management strategies for volatile demand

About Hubbell

Hubbell Lighting Inc., a division of Hubbell Incorporated (NYSE: HUBA, HUBB), provides a full range of indoor and outdoor lighting products for commercial, industrial, institutional and residential markets. Headquartered in Greenville, South Carolina, they rank among the top lighting companies in the world.

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 in order 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 to minimize or avoid any financial and customer service losses.

Kinaxis® helps Hubbell to dynamically align demand and supply. Hubbell Lighting is using RapidResponse® to help assess and mitigate supply chain risk, as well as respond to unplanned events.

 

Hubbell saw great results, why can't you?