Vatti Corporation Limited

Company Profile

Founded in 1992, Vatti Corporation Limited has focused on the kitchen appliance industry for 26 years. It is a well-known listed company in China with a certain degree of international influence. Today, Vatti Group's marketing and services have entered multiple countries and regions around the world. With a high-quality global supply chain and a professional R&D team, Vatti is empowered to become a Chinese brand standing tall in the world.

Project Background

1. As the company's market share of kitchen appliance products continues to grow, the supply chain faces significant inventory pressure. The root causes need to be identified and responsibilities clarified.

2. The supply chain planning system and processes are not well-established, and there is a disconnect both internally within the supply chain planning system and externally (between front-end sales and back-end manufacturing).

Project Process

1. From demand planning → S&OP → master planning → material planning/production planning → production scheduling → comparative analysis with industry best practices → identification of issues and gap analysis → identification of root causes → formulation of solutions;

2. Improved the sales forecasting system and the process architecture and policies of the supply chain planning system, providing assurance for reasonable business evaluation.

3. Improved the sales forecasting management process and the S&OP operation process, and communicated the concepts of S&OP operation and full-chain inventory to both the supply chain and the sales side.

4. Established and improved master planning strategies and material control strategies, providing reasonable guidance for master planning and material control work.

Implementation Results

1. Established and improved the operating model, pull-based master planning strategy, material control strategy, and other key planning management systems.

2. Clarified the positioning of S&OP and reached a consensus on the S&OP operation method.

3. Clarified the responsibilities and duties of the marketing department for market planning (forecasting), and reached a consensus on the operation of forecast management.

4. Standardized the work standards of the supply chain planning system, clarified authority and responsibility relationships, and strengthened supply chain collaboration capabilities.

5. Annual procurement costs decreased by 3%, inventory was reduced by 16%, and the order on-time delivery rate increased to 98%.