CANTABRIA LABS

The spectacular growth of Cantabria Labs increased the complexity of its management within the constantly evolving cosmetic-pharmaceutical market. They needed a centralized and automated solution that would help them be more competitive, achieve more reliable forecasts, optimize their inventories and improve visibility into their network.

The tool Kajal ITA’s Kajal tool was able to help the company overcome its challenges, automating its supply chain planning and improving several business objectives.

Problem

Cantabria Labs decided to initiate an upgrade of its forecast in order to improve the company’ s production planning and to have better visibility on future demand at different levels of granularity. For this purpose, Kajal Forecasting® was configured on the products of its Domestic and International divisions for the different warehouses and with different levels of aggregation. Centralizing information on historical demand, future demand projections, promotional activity or historical stock-outs on a single website helps the company identify demand trends, trigger potential red flags and improve responsiveness between planning and what actually happens in the supply chain.

Cantabria Labs needed to reformulate the inventory of its products, with a very varied sales dynamic and a great diversity of formats and markets. Kajal Inventory® was adapted to the company’s network of warehouses, offering the necessary stock parameters for each product in each of its warehouses. Kajal Inventory® performs the sizing of the stock of each product in each center based on probabilistic calculations taking into account the level of service that the company wants to offer to its customers.

Regarding the reporting system, the company has extended the visualization of Kajal Analytics reports to other units of the organization, such as sales, marketing and business, which facilitates interdepartmental communication throughout the company. Kajal Analytics monitors the level of available stock of each product by lot, allowing to analyze the level of risk of expiration and obsolescence. In addition, tracking the evolution of the stock and having visibility on breakage allows the company to have more information to make decisions.

Results

These are the benefits that Cantabria Labs has achieved thanks to the solution developed:

• Daily updated demand forecasts for more than 12,000 series.
• Visibility of future demand 18 months ahead, at different levels of aggregation.
• Increased forecast accuracy.
• Inventory sizing according to probabilistic models that adapt to the pace of demand.
• Dynamic calculation of target stock (and safety stock) in 6 warehouses.
• Automatic selection of algorithms, according to a model benchmarking system.
• Reduced time for forecast calculation and inventory management.
• Monitoring of stock evolution in the distribution network.
• Analysis of expiration dates per batch of stock of each product.
• Customized reports integrated into the corporate BI tool, following the corporate identity guidelines.
• Visualization of the annual budget in relation to sales and forecast.
• Self-service” reports, so that the user can configure his own reports.