ENARCO - KAJAL

Supply logistics plays a fundamental role in the smooth running of a company as it has a direct impact on production costs, affects product quality and final customer service, affecting costs and revenues and, ultimately, the profits of the logistics system. All these factors are determining factors in the success of the company.

Supply logistics takes into account the quantities to be supplied and their frequency, the demand forecast, the characteristics of supplier supply, the quality of customer service and, ultimately, the impact of the supply chain.

There are different solutions on the market to address the issue of procurement planning, however, not all of these solutions take into account all the elements that influence this chain process. The Kajal solution focuses on a company’s procurement planning by interconnecting all the factors in an integrated manner with the other processes of the chain, providing solutions that guarantee its applicability within the company.

Problem

ENARCO is a manufacturer of light construction machinery. A complete range of concrete vibration equipment is developed and marketed within the company, characterized by its quality and high performance, which has allowed ENARCO to position itself as one of the leading European manufacturers of this type of technology.

With the goal of continuing to advance in this technological and commercial leadership, ENARCO wants to develop different industrial solutions based on technology that will make it more competitive than the rest of its competitors.

The project developed in collaboration with ITA aims to offer a daily supply planning service for the company’s thousands of components, taking into account all the above factors in a dynamic way, guaranteeing the success of the global supply chain.

Results

The Kajal solution is a modular platform that encompasses different planning solutions in an integrated manner. The following three modules have been implemented at Enarco for procurement planning:

• The Forecasting module forecasts demand based on the dynamic selection of different estimation models, both statistical and artificial intelligence, choosing the one that best fits each of the components.
• Kajal Inventory is the module in charge of sizing the stock in the warehouse according to objective customer service criteria. To this end, the uncertainty of each reference associated with demand and supply is modeled. In addition, Kajal Inventory allows to optimize the stock of each product in the warehouse according to the investment constraints proposed by the company.
• Kajal Replenishment performs order planning at the component level taking into account the different ordering policies of the company, as well as the special characteristics of each supplier. The daily updating of the order plan for thousands of components according to the most advanced demand forecasting and inventory models allows the company to be continuously aligned with demand, thus reducing the associated costs and improving the level of service to its customers.