- 1 | TENNANT COMPANY
- 1.1 TENNANT ACHIEVES 80% EFFICIENCY GAINS WITH SLIM4
- 1.2 IMPROVED LONG TAIL MANAGEMENT
- 1.3 EFFICIENCY IMPROVEMENT OF 80%
- 1.4 DATA ACCURACY UP 30 PERCENT
| TENNANT COMPANY
Tennant Company is is a recognized leader in designing, manufacturing and marketing cleaning solutions that create a safer and healthier world. With a vision to become a global leader in sustainable cleaning innovation, Tennant is changing the way the world cleans.
Partnering with Slimstock helped Tennant improve forecasting and supply planning efficiency by no less than 80%. Convinced by the results, Tennant is now looking for further ways to more fully integrate Slim4 throughout their business.
- Increased service level from 96.5% to 98.5%
- Efficiency improvement of no less than 80%
- Slim4 data was up to 30% more accurate
TENNANT ACHIEVES 80% EFFICIENCY GAINS WITH SLIM4
A successful cleaning equipment manufacturer with global operations, Tennant chose Slimstock as their inventory management partner in 2014. In that time they have benefited from an efficiency improvement of no less than 80%, and have also increased service levels to stable 98.5%. By using Slim4 to streamline their supply planning operations they have greatly simplified their forecasting demand process.
Tennant manufactures and supplies an extensive range of innovative high-quality cleaning machines. They produce and assemble a large number of their components themselves, which are stored at an onsite distribution center. From there, products are shipped to distributors internationally. On average, over 2,000 order lines are picked at the distribution center every day.
Their product range consists of 50,000 to 60,000 active SKUs, of which over 22,000 are kept in stock. In the past, these items were managed manually. However, as Materials Manager Richard Ornek explains: “This was a labor-intensive task which required a lot of specialist knowledge.”
Thanks to help from Slim4 and the Slimstock support team, Tennant has been able to significantly reduce the complexity of this process. This in turn has enabled the business to become far more responsive and enhance their ability to manage by exception.
IMPROVED LONG TAIL MANAGEMENT
“Until now we have only used Slim4 to generate forecasts for the after-market. Production parts are still planned within our MRP-system and the data is combined in our SAP ERP system,” explains Ornek.
Because Slim4 integrated seamlessly with their current ERP systems, Tennant achieved service level improvement targets within just one year. With the greater insights Slim4 provided, the business’ performance has improved, particularly for critical components. Previously their service level did not exceed 96.5%, but now consistently delivers at 98.5%.
“Thanks to Slim4, we now have a reliable forecast. As a result, we can now maximize the profitability of our assortment, something which is essential for long tail articles,” explains Ornek. This improved reliability has also significantly decreased their number of back orders and partial shipments.
EFFICIENCY IMPROVEMENT OF 80%
By partnering with Slimstock, Tennant has been able to standardize processes so that they are no longer dependent on the knowledge of a single person. Slim4’s ease of use has allowed for the workload to be shared by several employees, reducing bottlenecks and the threats posed by single points of failure.
This has resulted in a huge amount of time savings: “Previously, a task would keep one person busy for two weeks. Now, with four people, we can complete the same task in just one afternoon. That’s a time savings of no less then eighty percent. Without Slim4, and the knowledge of the consultants of Slimstock, we could never have achieved this."
DATA ACCURACY UP 30 PERCENT
In the future, Tennant hopes to utilize Slim4 to support their sales and operations planning (S&OP) processes.
“This will enable us to improve forecast accuracy on a machine-level. With the statistical basis of Slim4, we can achieve a more reliable planning process meaning we are less dependent on the ‘gut feeling’ of our people,” states Ornek.
The accuracy of the inventory optimization solution has been further supported by an independent research project that Tennant carried out in conjunction with the Technical University of Eindhoven. The investigation highlighted that data from Slim4 was up to 30% more accurate than what Tennant had relied upon in the past.