Taming Franke’s Extreme Supply Chain Complexity

Franke’s tremendous growth resulted in a very complex supply chain network that was no longer running optimally. Franke’s Kitchen Systems and Water Systems divisions consisted of 42 locations (including 12 production facilities) with four echelons serving 146 markets and more than 125,000 SKUs (equating to 1.4 million SKUMarkets). Seventeen different ERP systems were in use. Data structures and planning processes varied. Franke rolled out SAP as the master database for all locations where SAP was the ERP system, but the system for demand forecasting and planning hadn’t changed nor were these processes integrated. This posed a huge problem given the complexity of Franke’s supply chain network.

Results

  • Significantly improved forecasting process stability
  • Significantly reduced time to execute forecasting and demand planning (approximately 50%)
  • Increased forecast accuracy (8 MAPE points reduction at material level)
  • Reduction of seasonal inventory peaks and related bullwhip effects
FRANKE sink

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