MicroVention had struggled to keep pace with rampant demand growth due to outdated technology and processes for forecasting demand and planning operations.
MicroVention reported a 90-percent drop in labor hours dedicated to forecast preparation and a 28-percent jump in forecast accuracy after implementing Vanguard Software’s business forecasting and planning platform (Read the full Case Study).
“Vanguard delivered more than we expected, which was a real eye-opener for many of us,” said Farhan Jama, Sr. Manager for Operational Excellence at MicroVention.
A subsidiary of the Japanese Terumo Corp., the medical device company had grown rapidly since its founding in 1997, eventually selling products in more than 60 countries worldwide. While that rapid expansion was a testament to the company’s product set, it had been causing serious operational difficulties. Big increases in unit sales and new products had surpassed management’s ability to meet demand cost-effectively.
MicroVention turned to Vanguard Software, which replaced MicroVention’s spreadsheet-based forecasting system with its best-in-class cloud-based platform for demand forecasting and planning. The results were stark.
Before Vanguard, “Our planning process was based on tribal knowledge, contacting customers for their estimated demand forecasts, and compiling those estimates into Excel sheets,” explained Jama. Now, “the results are priceless compared to the days before Vanguard Software.”
In addition to the major KPI (Key Performance Indicators) improvements, Jama said MicroVention users benefit from the platform’s global design, which lets them analyze forecasts by revenue, unit, region, product family, and SKU, all at the flick of a switch.
Because of the success with Vanguard’s Demand Planning solution, MicroVention is now looking to integrate Vanguard’s Supply Planning module for inventory optimization. Based on pilot tests, this integration would lower MicroVention’s inventory carrying costs by 15 percent to 20 percent within six months of implementation (Read the full Case Study).
MicroVention, a subsidiary of the Japanese Terumo Corp., develops devices and technologies that treat vascular diseases and associated complications, such as brain aneurysms. The company was founded in 1997 in Tustin, Calif., and has manufacturing and administrative facilities in Santa Ana and Aliso Viejo, Calif., and in San Jose, Costa Rica.