On the Right Foot

Technology Category

Functional Applications - Inventory Management Systems
Functional Applications - Manufacturing Execution Systems (MES)

Applicable Industries

Apparel

Applicable Functions

Discrete Manufacturing
Procurement

Use Cases

Inventory Management
Predictive Maintenance

Services

Cloud Planning, Design & Implementation Services
System Integration

The Challenge

Grupo Flexi, a leading footwear manufacturer in Mexico, faced increasing complexity in its supply chain as it expanded its product assortment. The company produces over 13 million pairs of shoes annually, with each pair requiring up to 30 different components and several raw materials. One of the most critical materials, leather, has variable lead times ranging from three weeks to three months, depending on the supplier. Flexi sources materials from several countries and distributes them to its manufacturing operations, which include 30 company-owned and subcontracted factories. Eight years ago, Flexi decided to expand its product assortment, introducing new products for different market segments. This initiative increased the complexity of managing more raw materials and stock-keeping units (SKUs), as well as more construction of shoes, which required different specializations and capacities in different factories.

About The Customer

Grupo Flexi is a leading footwear manufacturer in Mexico, with over 75 years of experience in designing, manufacturing, and selling quality footwear. The company produces more than 13 million pairs of shoes annually, making it the largest leather footwear manufacturer in Mexico. Each pair of shoes can have up to 30 different components and several raw materials, making the manufacturing process labor-intensive. Flexi sources materials from several countries and distributes them to its manufacturing operations, which include 30 company-owned and subcontracted factories. The company has expanded its product assortment, introducing new products for different market segments, which has increased the complexity of managing more raw materials and stock-keeping units (SKUs), as well as more construction of shoes.

The Solution

To manage the increased complexity, Flexi engaged JDA Consulting Services for a six-week consulting engagement. The consultants introduced Flexi to JDA’s supply chain planning best practices, identified areas of opportunity, and developed a roadmap to implement these recommendations. Flexi selected JDA Supply Chain Planner and JDA Demand Manager to improve its forecasting abilities, optimize its supply chain, and plan for the production, capacities and purchase of materials. The company worked with JDA to implement process and organizational recommendations and implement JDA’s solutions to improve the demand management and master planning process. JDA solutions have enabled Flexi to plan for a much higher variety of products. With most of the calculations and optimizations done by the software, Flexi can focus on strategic decisions.

Operational Impact

Flexi has been able to plan for a much higher variety of products with the help of JDA solutions.
The company has improved its inventory turns by 17 percent.
Flexi has achieved customer service levels of up to 90 percent, while reducing inventory and increasing overall sales growth.

Quantitative Benefit