225: Be ready for anything, with ToolsGroup

Today I’m joined by pioneering software company ToolsGroup, the innovators of service-driven supply chain planning software for companies that face high demand volatility, along with distribution and product line complexity. For more than two decades, ToolsGroup has been helping companies around the globe achieve the highest service levels in their industries while streamlining inventory and logistics costs. Their flagship software, SO99+, automates and optimizes supply chain planning tasks including demand forecasting and sensing, multi-echelon inventory optimization, replenishment and S&OP to meet target service levels. Today David Barton, General Manager for the Americas at ToolsGroup, joins me to chat all about the company: what they do; how their service-driven approach sets them apart; and exactly how we get our businesses ready for anything.   IN THIS EPISODE WE DISCUSS: [07.26] The incredible history, dating back to the ’70s, that led founders Joseph and Eugenio to establish ToolsGroup. “They discovered that the low hanging fruit in manufacturing was supply chain – that’s where the greatest impact could be had… so they focused the whole company on the use of service-driven planning in supply chain.” [12.31] The three core ToolsGroup focus areas of ‘predict,’ ‘protect’ and ‘perform.’ “Working with the constraints of the real world of supply chain and the built in uncertainty, you need an automated engine to optimize towards target service level - and it’s probabilistic forecasting that makes that possible.” [15.28] ToolsGroup’s unique service-driven approach, and its benefits. “Fundamentally, our focus is about business outcome, and service level can be equated to top-line revenue." [18.58] David reflects on the challenges of the last 18 months and what we can learn from them. “Dealing with those disruptions puts even more pressure on having digital transformation in your operating model.” [22.38] A closer look at the challenges of adopting a just-in-case approach to inventory and current lead-time disruption. “You can’t just crank up your safety stock as a strategy... Having a real word digital model of how your supply chain operates is essential.” [27.35] Why supply chain digitization and digital transformation are so important. “…being able to normalize and reconcile differences in data, so that you can get to a single view of the operating model of inventory, is one of the critical challenges customers face.” [30.22] A profile of ToolsGroup’s ideal client. [32.12] Client case study: how ToolsGroup helped a key customer increase service levels, inventory efficiency and ultimately increase market share. [35.00] The future for the industry, and for ToolsGroup.   RESOURCES AND LINKS MENTIONED: Head over to ToolGroup’s website now to find out more and discover how they could help you too. You can also connect with ToolsGroup and keep up to date with the latest over on LinkedIn, YouTube or Twitter, or you can connect with David on LinkedIn. Check out our other podcasts HERE.