Learn how NETGEAR Improved Forecast Accuracy and Supply Chain Efficiencies
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NETGEAR’s challenges emanate from the multiplicity and complexity of their supply chain. NETGEAR has 3 main product lines (retail, commercial, service providers) with an increasingly aggressive number of new product introductions in a highly competitive market. Despite the short lifecycle of NETGEAR’s products, they have long production lead times. With 300 to 800 components per product, only one shortage can result in missed deliveries or upside. Forecast accuracy is crucial to NETGEAR, but they hovered around the 70% mark, insufficient to meet their supplier needs. Additionally, NETGEAR needed systems and tools that enable this complex process to operate smoothly.
NETGEAR found that in order to empower their sales and operations planning process, a global, flexible and configurable best-in-class system was needed. NETGEAR sought an S&OP tool that could enable its closely integrated supply chain, respond to demand changes and events, adapt to new business and channel requirements and manage fast new product launches and transitions. After an extensive RFQ process, NETGEAR chose the Atlas Planning Suite from John Galt Solutions for its configurable architecture and flexibility, powerful inventory modeling, ease of collaboration and user personalization. John Galt was able to implement the Atlas Planning Suite on time and on budget across multiple NETGEAR global offices.
Since implementing Atlas Planning from John Galt, NETGEAR has been able to improve operations dramatically. Overall, the operations team has remained the same size while new product introductions have grown aggressively. NETGEAR’s forecast accuracy jumped from 70 to 80 percent and on-time deliveries increased to 99.5%. Also, NETGEAR’s ability to deliver large upside in short order has improved significantly. A major component of this success is how the software is implemented. John Galt was able to implement the solution globally and meet the delivery objectives in full.
“After only a couple of months we have already seen improvements in our forecast accuracy and process with Atlas,” said Francois Callait, Vice President of Global Supply Chain at NETGEAR.