MAY 2021

Strategic sales and operations planning for Fedrigoni paper and securities

The project objective

To support Fedrigoni’s digital transformation with a successful I-Plan implementation that enables them to:

  • Better manage customer service, production allocation, and inventory levels with a more standard set of processes and tools
  • Develop an S&OP process for a multi-site, multi-market business
  • Improve customer service whilst reducing inventory and production cost

Our scope

The scale of the challenge

Fedrigoni operates an extensive network of production sites, with complex product construction, a large product range and a diverse market:

  • Over 300,000 items in the demand forecast
  • Products manufactured across seven production sites in Italy, supplying a global market
  • Up to 10 process stages from raw material to finished product, many produced across multiple sites
  • Semi-finished product inventories need to be maintained between process stages to smooth the cyclic nature of paper production
  • Some complex products require up to 20 base papers in multiple grades and colours; produced at different sites
  • ~25,000 items to plan in the production network, many with choices of production route and method, optimised in I-Plan to maximise profitability
  • ~3,000 make to stock items in the distribution network, optimised to maintain target customer service levels whilst minimising working capital

Our phase one solution

Statistical Forecasting

Used to create a baseline forecast ready for collaboration with the business and customers.

Supply Network Optimisation

Providing multiple scenarios and ‘what if’ analysis, allowing the planner to evaluate feasible options.

Strategic Inventory Management

Safety stock calculations performed generating profiles based on statistical variability.

Demand Control

A real-time view of orders arriving, compared to original forecast, with ability to make adjustments.

With integration allowing real-time data sharing between systems: order position for customer and production orders, inventory position across the network, and the invoicing history required for the forecast.

The team

Inigo Bridle

Integrated Business Planning Consultant, I-Plan

Mario Naldini

Chief Operating Officer, Fedrigoni Paper and Security

Massimo Perbellini

Logistics Director, Fedrigoni Paper and Security

I-Plan software modules used

Demand

Supply

Inventory

Analytics

Successful implementation during a pandemic

Results in weeks

Our implementation leverages Agile methodologies, enabling us to customise what we deliver, in what order, to meet business objectives and priorities.

We delivered working software to Fedrigoni users every two weeks, creating demonstrable value early on in the project. Demand forecasting was in place in 3 months and the complete solution live in 10 months – including 15 real-time interfaces between SAP and the I-Plan Cloud environment.

Pivot to remote working

After just one month, the Covid-19 outbreak hit, with Northern Italy suffering one of the earliest and most severe health impacts. This forced an immediate pivot to remote only collaboration for the foreseeable future.

Video conferencing, digital whiteboards and guided screen sharing replaced face to face workshops and maintained effective collaboration across the team (I-Plan, Chainalytics as the I-Plan local partner, key Fedrigoni business stakeholders, Bain consultants and technical experts).

A recipe for success for Fedrigoni

  • Agile delivery methodology
  • Strong leadership and vision from the Fedrigoni Board
  • High levels of collaboration
  • Flexible and focused functionality of the I-Plan product

I-Plan is not just software. It is a different way to work – changing the processes inside our company and what we spend our time doing.

Mario Naldini headshot
Mario Naldini
Chief Operating Officer, Fedrigoni Paper and Security

Results

It’s early days in terms of tangible metrics, but here’s what Mario and Massimo had to say about the initial impact I-Plan has had, in just the first couple of months…

I-Plan takes care of the data and calculations so our Planner can now spend more time making strategic decisions.

 

I-Plan has enabled us to triple our forecasting horizon.

 

With I-Plan the stock is much more linked to the real consumption.

With the same consumption we can deliver better service levels, because we work in a way that puts the customer at the centre.

 

The coverage of every SKU has significantly improved for all locations by 5-10% – since January we have had the right quantity for each SKU.

I-Plan is not just software. It is a different way to work – changing the processes inside our company and what we spend our time doing.

Massimo Perbellini and Mario Naldini

Phase two in January 2022

Production

Inventory

Give I-Plan a go

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