Case Study: Lighting supplier Lyco Direct achieves faster supplier orders, improved forecasting and higher stock availability with Demand Solutions

Demand Solutions helps lighting components and systems supplier Lyco Direct keep its promises to customers

Lyco, a UK lighting components and systems supplier (Lyco Direct) stocking 2,500–3,000 SKUs from a single distribution center in Milton Keynes, faced a critical next‑day delivery promise that was undermined by slow, spreadsheet‑based forecasting. Using Mailbrain and manual processes until late 2004 required three people and three to four days to prepare roughly 100 weekly supplier orders, delaying suppliers, increasing costs and risking margins on low‑price items.

In October 2004 Lyco implemented Demand Solutions Forecast Management (DS FM) and Requirements Planning (DS RP). Demand Solutions automated forecasting, data cleansing and ABC coding, allowing one person to complete supplier orders before noon on Monday, provide rolling six‑month forecasts to suppliers and shorten lead times. The vendor’s solution freed staff for stock management, improved stock turns through better allocation and lifted availability by three percentage points in 2005 (with further gains in 2006).

Lyco

Paul Hobbins

Director