ARXADA
capability . Arxada is starting to look at order intake frequency trends in the short , medium and long term , as well as efficiently managing feedback from key customers .
“ We run our supply chain at varying sales to capacity ratios based upon how quickly we can respond up or down , based on an individual asset . So we ’ re using all those processes to manage up and down and make sure that we keep a constant supply and manage cash and cost effectively ,” adds Willis .
Arxada ’ s journey to optimise short , medium and long-term planning Arxada ’ s strategy throughout 2021 and 2022 saw its inventory and back orders continue to rise , while service levels deteriorated , but Willis saw this as no different than most in the industry . “ Between all the supply chain disruptions , staffing shortages and unpredictable demand , it caught us a little bit flatfooted ,” Willis says .
So , in September 2022 , the team took a reset and backed up to look at the whole system and completely redesign it .
“ We made it much more fit for purpose ,” notes Willis . “ To make sure that we ’ re prepared for the short , medium and long-term , to meet the needs of both the business and our customers , more efficiently .”
Arxada has two time-phased work streams , Fix and Iterate .
“ In short , that was all about here and now , making sure our ERP system was set up properly , making sure our planning practices were state-of-the-art and that we were monitoring and complying with the short-term needs of the business .”
Using these two time-phased work streams ensures that Arxada ’ s short-term orders are filled , midterm orders are planned and back orders are being covered .
“ This also makes sure that our inventories turn back the other way and start getting under control ,” says Willis .
The team has built the basics for organisational execution capability .
“ We found the processes we wanted to run as an organisation from end to end and then designed the organisation to effectively manage and control that process .”
Willis and his team have completely retooled the planning organisation , realigned
138 December 2023