It has been almost a year since the implementation of the sales and operations planning system at Biaxplen, a leading wrap film manufacturer, and today the OMP Plus solution has proved its efficiency.
EnterChain (formerly SCM Engineering), one of the OMEGALLIANCE® Group companies, in mid 2012, started to implement the OMP Plus sales and operations planning solution at one of SIBUR Holding affiliates—Biaxplen. In June 2013, the solution was commissioned and became essential for planning, production and sales management.
As the production level and sales grew it was evident that the company needed a dedicated powerful planning tool. In course of selection which included reference visits, testing in accordance with scenarios and total functionality testing of different dedicated solutions, it was decided to implement the OMP Plus system by efforts of the Russian OM Partners partner, SCM Engineering. High professionalism of the customer's project team and SCM consultants expertise helped set clear project objectives. In particular, those were maximizing profitability of the entire commodity distribution network and global optimization of the distribution chain, i e. lowering logistics costs by analyzing transport channels between production sites or production sites and markets, in order to define the least total cost. At the same time it is necessary to improve inventory management via the added value chain in order to minimize the balanced stocks, to improve management of seasonal demand variations and netback pricing (market price minus transport and logistical costs and export taxes) in order to focus marketing efforts on increase in sales in the most profitable sales points.
Alexander Oleynik, Deputy Director for supply chain management at Biaxplen, summarized the first year of the solution use: "The OMP Plus system has proved itself as an easily scalable solution. We now have a flexible tool to analyze the marginality of the entire supply chain plus a powerful optimizer able to define the most advantageous plan in a matter of seconds. I want to thank SCM Engineering for their attention to the specifics of our company as well as for their assistance and excellence."
The set objectives were fully matching to the functionality of OMP Plus. In addition, SCM Engineering developed a special report on product marginality which represented the structure of costs and profit margin per product at each plant, and provided online calculation and representation of total costs for procurement, production, storage and transportation at each supply chain node. The core of the solution is a mathematical optimizer which, in a few minutes, defines an optimal decision for the whole chain or its part. The system has provided additional advantages such as capability to define the minimal product price in each sales region. One can save several plan variants, compare them and choose the best one. This is a great help in taking informed and balanced decisions.
"Today we can say for sure that the implemented OMP Plus solution proves high return on investments at Biaxplen," comments Sergey Volkov, SCM Engineering CEO. "It is great to see how the project team's knowledge and experience in combination with one of the best in class OMP solutions has provided such a huge synergistic effect. Thus, our customer will be able to plan sales and operation using their sustainability potential to the full extent."