COMPANY: Milwaukee Electric Tool
WEBSITE: www.milwaukeetool.com
INDUSTRY: Manufacturing, Consumer Goods
COMPANY TYPE: Public
JOHN GALT SOLUTION: Atlas Planning Platform
Results
- Increased forecast accuracy 20%
- Improved inventory turns and fill rate
- New products and promotions drove 20% revenue growth
Company
Milwaukee Electric Tool Corp. is an industry-leading manufacturer and marketer of heavy-duty, portable electric power tools and accessories for professional users worldwide. The company continues to set industry standards, targeting professional tool users of all types with a product line that includes more than 500 tools and 3,500 accessories. By using state-of-the-art technologies and sophisticated manufacturing techniques, Milwaukee Tool leads its field in quality and durability.
Challenges
Lacking a formal demand planning process, Milwaukee Tool would react to supply chain disruptions and issues as they arose. The lack of strategic planning and shifting manufacturing with increased lead times forced Milwaukee to increase inventory buffers to compensate for the risk. This was costly and inefficient.
Solution & Benefits
Milwaukee recognized the need for an advanced supply chain planning software solution to establish an integrated demand and supply plan; a critical step to their long-term success. To enable their process changes, Milwaukee Tool sought a flexible and powerful system that can evolve and scale as their business needs changed. John Galt Solutions' Atlas Planning Platform proved to be the ideal solution.
The impact was transformative, addressing the challenges head-on and driving substantial benefits for the company. With Atlas' powerful forecasting features, Milwaukee was able to forecast their demand and mix far more accurately than ever before, allowing for more accurate inventory planning. By uniting the demand and supply functions in a single data model, Atlas ties changes in demand to their inventory policy in real time. Within the first year of implementing Atlas, Milwaukee Tool observed a 20% increase in forecast accuracy. With a solid forecast in place, Milwaukee was able to combine demand and supply planning functions into a single role which enabled further improvements in inventory turns and fill rate. The enhanced precision in forecasting enabled the team to anticipate demand fluctuations more effectively, paving the way for strategic decision-making.
Ultimately, Milwaukee's adoption of Atlas became a catalyst for business growth. The company’s SKU mix witnessed a dramatic improvement, thanks to the nuanced insights provided by the supply chain software. Atlas' capabilities empowered Milwaukee to optimize its product portfolio, aligning it more closely with market demands and customer preferences. The manufacturer was able to drive 20% revenue growth mainly from new products and promotions, boosting unit performance and positioning the business for sustained growth.
“We see John Galt as a Partner, not just a solution. They take the time to learn our business, and they give recommendations based on our business goals.”
Brad Sayers, Director of Supply Chain
