Case Study: Terumo Cardiovascular Systems achieves $1M savings and 36% inventory reduction with Demand Solutions

Getting to the Heart of Product Seasonality

Terumo Cardiovascular Systems (Terumo CVS), a global maker and distributor of more than 1,500 finished‑good SKUs including heart‑lung machines, disposables and custom tubing packs, struggled with a complex multi‑step supply chain and pronounced product seasonality that JD Edwards forecasting could not manage. To gain visibility across multiple plants and five distribution centers and to account for seasonal demand, Terumo CVS implemented Demand Solutions Forecast Management (DS FM) and Demand Solutions Requirements Planning (DS RP) in 2006.

Demand Solutions delivered exception‑based planning and clearer supply‑chain visibility, enabling monthly Sales & Operations Planning and trusted forecasts. As a result, Demand Solutions helped Terumo CVS reduce inventory by 36% (saving about $1 million in one fiscal year), increase inventory turns from 3.1 to 4.1, and raise fill rates from 97.5% to 99%, while cutting backorders, write‑offs and obsolete stock.

Terumo

Kevin Doughty

Director of Supply Chain Management