Manufacturing industry
From ad-hoc purchasing to control over suppliers and planning
For Brouwer, we extended the forecast horizon from zero to six to nine months. A consistent ordering methodology and insight into supplier performance created the foundation for predictable planning and proactive supply chain management.
1. The client and the challenge
In 2023, suppliers at Brouwer were primarily managed operationally and reactively. Orders were placed late, without forecasts or clear performance agreements. As a result, there was little visibility into future material requirements and supplier performance, leaving the supply chain vulnerable and day-to-day operations stressful. The mission: replace ad hoc purchasing with a structured ordering process, provide clear insights into supplier performance, and develop a forward-looking planning process.
Core pain
How do you prevent procurement from constantly lagging behind when material requirements and supplier risks only become apparent at the last minute? Without forecasting, fixed ordering rules, and performance insights, the organization remains dependent on rushed actions instead of a predictable supply.
2. Our approach
We introduced structure to ordering, planning, and supplier evaluation. The ordering process was standardized using order units per item (HU/SKU), minimum order quantities (MOQ), and reorder points based on stock thresholds (ROP). In addition, we introduced forecasting based on historical data and sales projections. We provided clear insight into supplier performance regarding on-time delivery, quality, and communication, serving as a foundation for focused discussions and collaborative improvement.
3. The diagnosis
There was no cohesive system to translate future material requirements into timely orders and clear agreements with suppliers. The forecast horizon was zero months, and there was no standardized ordering methodology. On-Time Delivery (OTD) was also not tracked, making it impossible to evaluate suppliers based on shared, factual data. Therefore, the potential for improvement lay not only in ordering sooner, but in connecting reliable planning, up-to-date ordering parameters, and measurable supplier performance.
4. From insight to execution
We translated the new ordering methodology into fixed baseline principles per item and supplier: which order unit is used, what is the minimum order quantity, and when should a new order be placed? Using historical data and sales forecasts, we built a forecast with a horizon of six to nine months. Dashboards enabled fact-based discussions regarding OTD, quality, and communication. This laid the foundation for recurring supplier performance meetings, where Brouwer and suppliers can review agreements, address risks earlier, and jointly drive improvements.
5. The result
The forecast horizon expanded from zero to six to nine months. Ad-hoc orders were replaced by a standardized ordering methodology using HU/SKU, MOQ, and ROP. Where supplier performance previously lacked visibility, dashboards and a foundation for periodic performance reviews became available. OTD became measurable and, according to project data, showed improvement. This created a structural foundation for Brouwer to operate less reactively and plan further ahead, creating room for partnerships and joint improvement projects with suppliers.
6–9 mos
Forecast horizon · previously 0 months
HU/SKU
Fixed ordering method with MOQ and ROP
Measurable
OTD, quality and communication per supplier
The baseline situation refers to 2023. No baseline or target percentages were provided for the improved OTD; therefore, progress is described as measurable and improving, without a numerical performance claim. The six-to-nine-month horizon describes how far ahead planning is done, not a guaranteed forecast accuracy.
6. Next step
The next step is to further embed forecasting and supplier management into daily operations and periodic supplier reviews. AI-driven forecasting can combine sales data with seasonal patterns and relevant external factors, such as economic trends and transport costs; a pilot should demonstrate whether this yields better predictions than the current method. A supplier performance dashboard with predictive indicators can help identify risks regarding OTD, lead times, and quality earlier, enabling targeted actions. Additionally, automated item data synchronization via an API or supplier portal can keep data on minimum order quantities, lead times, and pricing terms up to date in the ERP and, where relevant, the WMS. This can reduce manual work and the risk of errors while strengthening the foundation for forecasts and replenishment proposals. These applications are recommendations, not yet realized results; data quality, integration availability, and the business case must be validated beforehand.