CooperVision Sharpens Visibility
For CooperVision, the company’s vision is in focus in more ways than one. However, this wasn’t always the case. Products are sourced through very complex multi-level networks and, until recently, the company lacked a fully integrated view of global operations. Having grown through acquisition, CooperVision inherited several different ERP systems, and supply chain planning was performed locally, with no visibility across the company’s multiple locations. Limited visibility necessitated increased buffer stock throughout the global supply network.To further complicate matters, CooperVision’s vast array of lens parameters for vision correction requires the company to inventory a very large portfolio of SKUs to manage item-level demand; and makes forecasting a continuous challenge.
A Stable, Clear Vision
CooperVision selected Logility Voyager Solutions to instill best practices across its global network and to create a common company-wide supply chain platform.
According to Ruth McElheny of the global supply chain group at CooperVision, “Logility Voyager Solutions provides us with an integrated view of global operations — our first common platform across the company. Although multiple ERP systems are still in place at CooperVision, we have made significant strides in gaining supply chain visibility around the world.”
What’s more, the solution has “helped improve the stability of our supply chain, and had a positive impact on our bottom line,” remarks Lee Dame, vice president Global Supply Chain, CooperVision.
20/20 Insight
With the ability to drill down into the detail behind the demand plans, CooperVision saw improvements in SKU-level forecast accuracy. Accurate item-level forecasting allows for a better indication of manufacturing frequency, impact on inventory turns and discard potential; which in turn, reduces inventory obsolescence. This has helped CooperVision make better decisions about production assignments and inventory policies. By moving production from a high-volume to low-volume production line, the company decreased from 20 months on-hand to five months for one product family.
CooperVision is also able to set time-phased inventory policies and use statistical safety stocks linked to the comprehensive demand plan.
To further lower inventory investments, the solution supports CooperVision’s manufacturing postponement strategy of holding “silver stock”, an unpackaged intermediate stage of inventory, and “white box inventory”, the finished goods without labels, until the company is ready to respond to market opportunities.
A common supply chain platform also provides CooperVision with the foundation for an effective S&OP process. Now with access to global inventory, supply and demand plans, the company’s progress with the corporate S&OP initiative is well underway.
Where does CooperVision go from here? The major areas of focus moving forward are around S&OP and PLM, according to Dame. “We are working on these initiatives with Marketing, R&D, and Operations,” he says. “Following this, we will be focusing on MDM tools and a consolidation of our ERP solutions.”
FAST FACTS
Company-at-a-Glance
CooperVision Inc. has sales of $1 billion and is one of the world’s largest contact lens manufacturers. It is the No.1 maker of toric lenses, and every six months the company sells up to 2.5 million unique contact lens configurations.
Words of Wisdom
“When we first started working on this initiative, we were often told that the data integrity wasn’t good enough or that there were issues with reconciling information between source systems. That was, in fact, true. However, we started improving the information a little at a time. We still have lots of data challenges, but the situation has improved enough that we are able to use the information for business decisions.”
— Lee Dame, Vice President of Global Supply Chain, CooperVision
In Focus
As one of the world’s leading contact lens manufacturers and the number-one maker of toric contact lenses, CooperVision’s product portfolio is intended to correct the vision of those who are nearsighted, farsighted, have an astigmatism, or any combination of the three.