ILIM GROUP in partnership with Enterchain launced the project of production, shipments and sales of end product planning processes optimization

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A large-scale project on optimization of planning processes was launched at three production sites and the office of the ILIM Group in St. Petersburg. From January to August 2019, the ENTERCHAIN company will work on the formation of target processes for job-order sales, production and shipment planning for the main types of pulp and paper industry end products at the ILIM Group sites in Koryazhma, Bratsk and Ust-Ilimsk.

ILIM Group's cooperation with ENTERCHAIN company began with the implementation of a solution for optimizing the planning of OMP CSBS corrugated packaging production in 2010 at the Ilim-Gofra site, located in Kommunar town, Leningrad region. The project was recognized as successful, the solution is used at the site to this day and continues producing economic benefit. Since then, the ENTERCHAIN team has repeatedly confirmed their high professional level in the field of production planning, and when the ILIM Group faced a necessity to improve the efficiency of planning processes, the ENTERCHAIN consultants formed a proposal that meets the business requirements at its best.

The started project on optimization of planning processes involves building the target logic of business processes at all levels — from monthly sales and operations planning (S&OP) to calendar and operational production, shipments and sales planning in order to improve the level of customer service and ensure the efficiency of production and logistics. Processes will be designed based on the best practices and at the same time corresponding to the company's targets, taking into account the work features of all production sites and synchronizing the participation of all involved structural units.
ILIM Group has set the following tasks for the ENTERCHAIN, that will be performed within the framework of the project:

  • Formation of target processes of sales planning, job-order planning of production and shipment of end products (including rescheduling processes based on actual data) in order to optimize and unify the processes for structural units in the context of product groups;
  • Detection of the relationships between the integrated planning processes and the optimal inventory calculation aas well as designation of warehousing logistics and transportation for the understanding of the general efficiency factors for the three blocks of indicators: Costs, Floating capital, Servicing;
  • Definition of the ILIM Group tasks in the field of organizational adjustments that would lead from current to target state.
By the autumn of 2019, it is scheduled to form up all the target processes for planning sales, production and shipments of the ILIM Group in accordance with international standards of supply chain management (SCOR, APICS) and taking into account the practical experience of ENTERCHAIN and its partners in the field of integrated planning of production enterprises.

"The example of ILIM Group shows the optimal approach to achieving the objective of increasing the efficiency of production, when the business requirements and objectives of the customer are imposed on management techniques, and industry best practices, and only after that the formed business structure becomes the basis for digital solutions", says Anton Shmatalyuk, Executive Director of ENTERCHAIN. “Only with this approach, the customer's business receives an integrated environment in which three components — People, Processes and Digital Technologies interact effectively, bringing significant economic benefits and increasing the completeness level of planning and management processes."