High-tech component supplier JAE Europe expects to save £500,000 ($765,600) a year by rolling out demand planning software that will cut its dependency on air freight.
The UK company, based in Camberley, Surrey, plans to use SCM Demand Planning software to manage its supply chain and stock control more effectively.
The software, supplied by Infor, will help JAE Europe, which specialises in components for the car industry, forecast how much inventory it will need six months in advance, reducing its dependency on air freight for last minute deliveries.
"Because our customers cannot accurately predict demand, we have carried excessive, unnecessary stock and relied on air freight to complete orders in time," says Matt Harris, supply chain manager.
JAE Europe uses air freight to deliver 80% of its components, but claims that it will be able to deliver most of its products by ship by using the software to match demand and supply more accurately.
The move will help JAE avoid stiff penalties incurred if it misses a delivery to a major automotive supplier.
"Manufacturers now realise that with better visibility into demand, they can make big cost savings and operate greener supply chain by avoiding expensive air freight," says Andrew Kinder, director of solutions marketing at Infor.
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Source: Flight Daily News
