CASE STUDIES

Developing a Flexible Demand-Supply Synchronizing Strategy to Minimize Overall Cost to Serve for a Personal Protective Equipment Market Client | Demand Management Solution

Jun 9, 2020

Personal Protective Equipment Market Overview

The COVID-19 outbreak has increased the demand for PPE products, including masks, protective clothing, and gloves worldwide. Besides, growing awareness regarding workers’ health and safety and increasing demand for respiratory equipment in mining are expected to propel the growth of the personal protective equipment market. Despite this positive outlook, rising costs, supply chain complexities, PPE shortages, and lack of integration are expected to hamper the growth of the personal protective equipment market over the coming years. As such, PPE manufacturers will need to consider the future security of the supply base. This is where Infiniti steps in with its best-in-class demand management solution. Demand management solutions can help companies in the personal protective equipment market to forecast demand for supplies and respond to customer needs faster in a period of crisis.

Since the COVID-19 outbreak, demand for masks, gowns, gloves, and other protective gear has increased by a factor of 100. To meet this demand for supplies, PPE manufacturing companies will need to reimagine their supply chains with a redoubled focus on agility, resilience, social responsibility, and humancentric needs. Learn how our business continuity solution can help achieve this objective.

Business Challenges Faced

The client is a personal protective equipment manufacturer based out of the United States.

Unpredictability within the personal protective equipment market caused inventory shortages for the client. Also, the client faced challenges in aligning their production cycle with the patterns of patient demand and increasing the frequency of the manufacturing process accordingly. Besides, long-lead times made it difficult for the client to deliver products on time and on-demand. Additionally, the personal protective equipment market client faced challenges in managing the reverse logistics process of personal protective equipment. Also, the company’s lack of supply chain visibility and highly manual processes resulted in increased costs throughout the supply chain. The personal protective equipment market client, therefore, wanted to secure the supply base and respond to customer needs faster. They chose to partner with Infiniti Research to leverage their expertise in offering demand management solution.

By partnering with Infiniti Research, the personal protective equipment market client also wanted to:

  • Respond to extreme volatility in demand globally, regionally, and locally
  • Forecast demand for supplies in known and unknown crisis
  • Understand true risks to supply and the ripple effect on quality, timeliness, and service delivery
  • Enhance visibility into supply levels
  • Respond to customer needs faster in a period of crisis by redirecting product flows through smaller distribution channels

Personal protective equipment manufacturers are facing roadblocks when it comes to supply chain efficiency. Contact us to learn how our business continuity solutions can help PPE manufacturers to build a resilient supply chain for the future.

Our Integrated Approach:

  • The initial phase of the demand management solution included creating transparency on the multitier supply chain. This involved working closely with the company’s manufacturing team to identify supply chain complexities.
  • The next phase included optimizing production and distribution capacity. Also, the experts at Infiniti Research focused on conducting scenario planning to understand the impact of the changing product demand on the client’s operations.
  • The third phase included focusing on Tier 1 supplier risks. This was done by gaining visibility into Tier 1 supplier inventory, warehouse, and order fulfilment status.
  • As a part of the demand management solution, our experts also worked closely with the client to help them develop a holistic supply risk assessment model.

Business Outcome

With Infiniti’s demand management solution, the personal protective equipment market client was able to create transparency on multitier supply chains by establishing a list of critical components, determining the origin of supply, and identifying alternative sources. Also, the experts helped the client to estimate available inventory along the value chain and manage demand and supply requirements. The client was also able to understand the demand impact specific to their business and subsequently devise a flexible demand-supply synchronization strategy. Moreover, by evaluating alternative inbound logistics options, they were able to maintain productivity and maximize profitability.

With Infiniti’s demand management solution, the personal protective equipment market client was also able to:

  • Center the supply chain around customer needs
  • Shift towards multiple micro-segmented, fit-for-purpose supply chains
  • Proactively respond to changing PPE demands
  • Leverage cost-effective, automated warehousing solutions and enhance visibility into inventory, shorter lead times, and lower operational costs
  • Partner with an experienced third-party provider and manage the reverse supply chain

Within six months of leveraging our demand management solution, the personal protective equipment market client was able to manage demand-supply requirements and minimize overall cost to serve by 13%.

Want to know how our demand management solution can help your business? Request more info here.

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