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Implementation of Demand Visibility solution and integration with ERP for another tier-1 automotive component supplier

Implementation of Demand Visibility solution and integration with ERP for another tier-1 automotive component supplier

The client is a reputed company in the automotive space and is a global supplier (Tier One Automotive Supplier) of a range of integrated systems, modules and components serving commercial truck, trailer and specialty original equipment manufacturers (OEMs) and certain aftermarkets. There was a need for increased visibility into demand data and improving forecasting figures.


Key Drivers

  • Manual excel-based forecasting activities contributing to errors
  • Inability to quickly respond to customer demands/ changes
  • Lack of visibility into customer demand
  • Inventory pile-up/stock outs due to fluctuating demand


Solution Highlights

  • Implementation of Oracle Demantra to utilize functionalities of Demand management, Advanced forecasting and Demand modeling, Operations planning
  • Development of custom integration between Oracle eBusiness Suite and Demantra. The client did not use the standard integration available because the current EBS version used was lesser than 11.5.10, which is the prerequisite for the standard integrations to be configured
  • Conducted Parallel launch to validate Demantra Forecast with existing forecasting during the pilot launch of the project phase. Pilot launch approach of implementation proved to be very successful and less riskier for the client
  • Setting up Waterfall analysis of customer demand over time to monitor ‘drop-ins’ and other demand events in time to respond without supply chain disruption
  • Constraint based planning setup and scheduling support carried out


Benefits

  • Improvement in complete forecasting for one customer – reduction in shipment cycle from 8 hours to 20 minutes.
  • Improved forecasting to an average of 30-35% MAPE.
  • Quicker response to forecasting changes due to custom integration between EBS and Demantra.
  • Created aggregation level at customer, site, Product Series, Commodity and Business Unit level
  • Alerts set up for scenarios where there was variation in Customer Forecast above a certain predefined tolerance %

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