Beyond Planning, the Next-Gen Supply Chain – A Focal Story

Focal was founded in France in 1979,  and specializes in designing and manufacturing proven acoustic solutions. Their products are divided into four categories: domestic HiFi speakers, car speakers, monitoring speakers, and audio headsets. The sound quality of their products makes them unique in the market as they try to be as neutral and accurate as possible.

Focal generates more than 75% of their revenue outside of France, mainly in North America and Asia. Their objective is to continually develop new technologies while focusing their strategy on research & development as 8% of their revenue is invested in it.

This investment poses a huge challenge to the company as they have to be able to maintain their quality  while increasing volumes and continuing to grow.

Focal has a complex supply chain with long lead times because they use very specific components to reach the required quality. Since Focal has a lot of new products and features, they must be able to constantly adapt to keep up. Additionally, Focal’s products are high end, meaning they only produce small and medium batches ; thus, it is difficult to forecast product sales.

In 2016, Focal identified a need for a new solution when they were overstocked on many parts and their service level dropped. At this time they were using Excel with a unique and static model for all of their products that didn’t adapt to each family and product’s typology specificities. They started looking for a solution with the support of a supply chain consulting company and ended up choosing the DynaSys DSCP solution.

The functional richness the solution brings coupled with the solution’s ergonomics was very important for our daily users ; the simplicity and relevance of the information they obtained from it was crucial. For this project, Focal choose to implement the DynaSys Ready-to-Plan (RTP) solution, a pre-configured solution, that allowed for a quick installation of demand planning within the company. They were also able to compare their practices with the market’s best practices to provide both a solution and an improvement of their processes.

According to Focal, the benefits of the DynaSys solution included a better control of their inventory, improved service level, and enhanced S&OP process quality. Furthermore, the solution helped Focal work on their sales budget for the upcoming year, and enabled them to plan the entire sales budget for 2019.