“The Triniti team helped us take our first step in the Oracle Cloud journey with Oracle Demand Management Cloud.
- Dan Bolduc, Sr. Director - IT Enterprise Systems, AngioDynamics
In Aug'20, AngioDynamics went live with Oracle Demand Management Cloud Solution integrated with Oracle EBS
AngioDynamics was looking to reduce Inventory Cost by improving forecast accuracy. The as-is manual process resulting in poor collaboration was the primary reason for low forecast accuracy. To build a business case, we focussed on two aspects:-
-
A Quantifiable improvement in forecast accuracy for RoI justification - mandatory for project approval
-
Digitized tools to facilitate the process
To make the exercise quick yet impactful, we limited the dataset to a product category with the highest demand variability and the least accurate Forecast. The approach was to backtest one year of forecast generation using two years of actual booking data.
Proof of Concept
We extracted and loaded the Actual Bookings and its associated Master Data (SKUs, Orgs, Customer Groups) for the last two years from Oracle EBS. We tuned the Oracle demand planning engine to generate a Statistical Forecast for one year. For comparison, we also loaded the Historical Forecast generated and used by AngioDynamics using the existing approach. We compared the following three measures for the last one year:-
-
Actual Bookings (Demand History),
-
Historical Forecast (using as-is approach), and
-
Statistical Forecast (generated by Oracle Demand planning)
Outcome
Both on the Net and Absolute variance, in comparison to the Historical Forecast, Statistical Forecast tracked closer to the Actual Bookings. The business team extrapolated these variances to inventory cost reduction dollars. The numbers provided much-needed confidence to the AngioDynamics team (Business and IT) to seek executive approval for the implementation. The RoI justification based on the proof of concept and the capability fit matrix helped build a compelling case for Oracle Demand Management Cloud.
In our next post, we will go over the cloud implementation journey and how Triniti tools helped bridge the gaps.
AngioDynamics is a leading provider of innovative medical devices used by interventional radiologists, nephrologists, and surgeons for the minimally invasive treatment of cancer and peripheral vascular disease. Founded in 1988 in Queensbury, NY, USA, AngioDynamics is today a NASDAQ-listed public company.
“Triniti is a customer-friendly partner. They quickly adjusted their team's resources and availability when COVID disruptions made us re-prioritize our project portfolio. We needed to re-think how we handle particular situations, and the Triniti team went above and beyond the project's initial scope to assist us with our sudden unplanned needs. They helped us with critical supply planning simulations and advice on industry standards and best practices as well. Their ability to adjust to help with short term needs but also their understanding of our long term roadmap and technology advancements have strengthened the business partnership between the two organizations.
- Dan Bolduc, Sr. Director - IT Enterprise Systems, AngioDynamics