A global manufacturerStronger planning processes

Helping a global manufacturer strengthen their planning processes by implementing SAP IBP

The project

The company was struggling with many manual planning tasks as well as tools which were time-consuming to update and not interconnected.

They wanted to strengthen their planning process by implementing a new tool and process for demand planning, supply planning and S&OP. The new processes were to be supported by SAP IBP.

A simple demand planning process focusing on stable and transparent demand was implemented. In addition, a cost optimiser was introduced for planning the supply network from finished goods to semi-finished chocolate products and raw material sourcing.

Finally, the new tool and process were aligned with the existing S&OP process.

The impact

• Forecast bias was reduced by 5%.

• Forecast accuracy was improved by 10%.

• A reduction in manual tasks of approximately six work days per month was achieved through a significant reduction in manual data loads and data preparation.

• Improved data and process transparency was achieved through one set of numbers: shared data model between sales, demand planning and S&OP.

• Increased transparency was achieved in projected stock, safety stock planning and seasonal planning, leading to a decrease in Net Working Capital (NWC).