Cambro Increases Inventory Efficiency with John Galt Solutions
COMPANY TYPE: Privately Held
JOHN GALT SOLUTION: Atlas Planning Suite
Cambro is a leading manufacturer of food storage and handling containers. Since its founding in 1951, the company has delivered numerous innovations that today’s consumers take for granted, including the first plastic food pan and the first clear food storage container. Since the 1980s, Cambro has moved into the European market, acquiring two major distributors in the past 10 years to cement their position overseas.
Cambro struggled with an inflexible forecast that didn’t account for variability of demand. Originally, their MRP system plugged in a single quarterly forecast number that was then divided evenly into weekly buckets, ignoring the realities of seasonality and large orders. As a result, Cambro’s forecasters had to put in long hours manually adjusting the inflexible forecasts, and even then were not able to optimize production. The demands on the forecasting department became so great that Cambro was forced to outsource some forecasting functions.
Cambro’s Director of Materials sought a solution that would be able to reflect the unpredictable nature of their business while offering a measure of stability in their inventory levels. The Director’s goals included reducing the number of stock-outs that resulted from large orders, optimizing the forecast to meet their production schedule, and reducing the number of overtime hours worked in his department.
Cambro’s Director of Materials researched various software solutions that promised to remedy Cambro’s issues. The Demand Management Engine module of John Galt’s Atlas Planning Suite fit all their most important criteria with its power, flexibility, ability to manage by exception and visual presentation. Galt’s track record of successful implementations with similar companies offered further encouragement.
Following the implementation of Galt software, Cambro observed a marked increase in inventory efficiency. They managed to improve by a full inventory turn, resulting in carrying cost savings of $100,000 annually, and achieving a 42% reduction in key item stock-outs. Overtime pay at the forecasting department is down 57%, resulting in payroll savings of $230,000 annually, and the outsourced tasks have been combined back into Cambro’s main forecasting department, resulting in a 10% sales increase.
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