Client Overview
Region
Global
Industry
Automotive Manufacturing
Challenges
- Disconnected Forecasting and Execution
- No Structured Forecast Cascade
- Lack of External Signal Integration
Results
- Structured Forecast Cascade
- Increased Agility
- Foundation for Implementation
1. Challenge Overview
Disconnected Forecasting and Execution
High-level inputs weren’t usable day to day:
- Annual forecasts provided limited guidance for weekly or monthly production.
- Order visibility was too short-term to react properly to supply disruptions or demand shifts.
No Structured Forecast Cascade
Forecasts didn’t translate into production:
- There was no process to break down vehicle-level forecasts into part-level production signals.
- This created inefficiencies in inventory management and plant-level planning.
Lack of External Signal Integration
External trends were missing from the logic:
- Broader market trends (e.g., GDP shifts, vehicle mix changes) were not reflected in the planning logic.
- The system could not proactively respond to volatility.
2. Solution
2-Day Strategic Planning Workshop
Facilitated by IBP Ready to align key stakeholders on forecasting logic and planning flows.
Designed a planning engine that cascades forecasts from OEM vehicle volumes to part-level requirements.
Forecast Cascade Logic
Top-down breakdown from vehicle models to components and manufacturing plants.
Structured inclusion of external factors like market trends, seasonality, and disruption risks.
Future-Proof Planning Roadmap
Created a step-by-step plan to build the new planning engine inside or outside SAP systems.
Defined data sources, roles, and KPIs to track improvements.
3. Results
Structured Forecast Cascade
A clear logic to connect OEM demand to plant-level planning across the global network.
Increased Agility
The new process reduces risk of overproduction and helps teams respond earlier to demand shifts.
Foundation for Implementation
A realistic roadmap that can now be used to develop the planning engine and guide system configuration.
Quick navigation
- Disconnected Forecasting and Execution
- No Structured Forecast Cascade
- Lack of External Signal Integration
- 2-Day Strategic Planning Workshop
- Forecast Cascade Logic
- Future-Proof Planning Roadmap
- Structured Forecast Cascade
- Increased Agility
- Foundation for Implementation
