Case Study: Microsoft achieves major supply chain efficiency gains with AnyLogic simulation software

Microsoft End-to-End Supply Chain Management Solution Design, Testing and Implementation

Microsoft faced growing complexity in its global supply chain, with 30,000+ products, 600+ suppliers, 13 contract manufacturers, and distribution in 191 countries. To address inefficiencies, excess inventory, and service-level issues, Microsoft worked with AnyLogic and Goldratt Research Labs on an end-to-end supply chain management solution, validated with an AnyLogic simulation model.

AnyLogic helped test and stress-test a Theory of Constraints–based design implemented in SAP, including rules for ordering, buffering, release control, and shared priorities. The project was completed in under 9 months and delivered a 5% increase in customer service levels, a $250 million reduction in global inventory, and over $100 million in markdown and obsolescence cost savings.

Microsoft

Robert Meshew

CTO of Global Supply Chain