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Barloworld keeps 24-hour guaranteed delivery with automated order recommendations
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Barloworld Energy Products (BEP) exclusively distributes Perkins and Massey Ferguson
equipment and parts in four countries. There are 100,000+ Perkins engines in the
region and 40% of farmers are said to own at least one Massey Ferguson machine.
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- Ordering was taking two weeks which reduced overall productivity
- Wanted to improve forecasting of fast, slow and seasonal trend items
- Sought to prevent lost sales in peak seasons and over-stock in times of low demand
- On spares with high demand volumes, inventory policy decisions included required
service levels
- Needed to streamline process of buying agricultural items
- Order slow moving items by assigning these to a reactive ordering process
- Account for dip in demand with surplus order indicators
- Automate order recommendations on a daily basis to support BEP’s commitment to 24-hour
delivery
- Improve stock turns and reduce excess stock levels
- Calculate safety stocks to meet required service levels
- Inventory investment reduced by 33%
- Service Levels increased to 97% on fast moving items
- Replenishment process time reduced from two weeks to one day
- 24-hour delivery guaranteed on orders placed before 5 pm the previous day
- 12-month ordering projections given to suppliers
- Achieved ROI in one year
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