Company Background
India’s largest machine tool group and manufacturer of precision automation accessories having over 25 sales branches and offices in India and China.

Need for forecasting
Forecasting is key to ensure timely delivery of the orders in a highly competitive and demanding automotive industry. Raw material dependencies on the dispersed national and internal geographies means that the order needs to be forecasted well in advance to ensure short delivery times are met.

 

 

 

Issues with current process
Delivery time lines were getting challenged with unpredictability of orders in the current process. There was an element of surprise in the system as the sales team was not being challenged on the funnel due to lack of information. A typical sand bagging behaviour resulted into a last minute rush.

The change we made
Funnel comparisons and multi layer review mechanisms ensured that sand bagging effect was removed from the system aligning the demand to the funnel

In addition to the forecast, analytics with respect to the automotive sales growth etc were introduced using the BI interface to help the executives get a longer term view of the company’s growth prospects and also flag any risks.

Conclusion
The manufacturing time lines and customer order service levels significantly improved as the plant was getting a forward forecast for up to the period to match the raw material lead times quite reliably from the central planning team using the system.

The plant operations team also collaborated in the planning process by flagging any supply side risks, which helped the sales team in managing the client relationship and setting the realistic expectations.