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The client has manufacturing plants in the US,
Japan and China. Every week sales offices located
in the US, Europe, China, Japan, Canada and Latin
America send in weekly demand forecasts to these
factories.
The Marketing and Sales Group uses spreadsheets
called Marketing Inventory Plan (MIP) for demand
forecasting and planning. MIP was created with
inputs from sales orders, dealer demand, product
inventory, factory’s production schedule
and sales data. The Marketing Inventory Plan (MIP)
was sent to the factories on a weekly basis. The
factories used this data not only create a manufacturing
production schedule but as a basis for the factory’s
procurement and inventory level decisions. The
factories in turn sent the Marketing Group a production
plan called Actual Production Plan - APP.
These manually created spreadsheets were error
prone, data inconsistent, time consuming and required
frequent manual intervention on business critical
data. Miscalculation in forecasting demand could
result in an excess or shortage of supply chain
inventory. This would lead to failure in on-time
delivery to customers and cause major losses to
the client.
Users of the existing demand forecasting and
planning system also had to deal with recurring
problems/issues such as missing and inaccurate
data, EDI, inefficiencies due to lack of functionality,
unstable interfaces to external data sources,
inconsistent look and feel, scalability issues,
unstable systems and reporting inconsistencies.
All this resulted into high maintenance cost,
performance degradation and reduced efficiencies.
Competitive pressures were also driving the client
to create processes to respond quickly to ever-changing
customer demand.
The client’s existing demand forecasting
and planning system could not be extended due
to the tight integration of the business logic
with the presentation, architecture flaws and
inextensible system. In order to address these
issues the client decided to automate the entire
forecasting process and business planning process
and implement a system that would not only facilitate
the forecasting and business planning process
but also promote collaboration with customers
and rapid exchange of demand information with
factories.
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