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Improved Forecasting and Reduced Shipment time for F500 Tier One Automotive Supplier

Improved Forecasting and Reduced Shipment time for F500 Tier One Automotive Supplier

Client
  • Our client is Fortune 500 global leader providing innovative drivetrain mobility and braking solutions for original equipment (OE) manufacturers of trucks, trailers and specialty vehicles
  • Client has 156 manufacturing and distribution operations spread across 27 countries
 
Situation
  • Improve forecasting accuracy by 45% - A solution with global visibility and rapid response capabilities was needed
  • Improve cash cycle and working capital by 20% - Sourcing from individual plants was inflating inventory levels, as well as causing variances, and negative cash-flow
 
Solution
  • 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
  • Implementation of a best-in-class solution like Oracle Demantra for Demand management, Advanced forecasting, Demand modeling & Operations planning
  • Integration of Demantra with Oracle EBS, to ensure seamless flow of information
  • Collaborative Operating Model with an integrated governance structure
 
Process & Technology Areas
  • Technology Areas: Application Development and Enhancement, Oracle Demantra Implementation, Oracle EBS
  • Process Areas: Demand Forecasting, Advanced Planning, Demand Management
 
Benefits
  • Improvement in complete forecasting for one customer – reduction in shipment cycle from 8 hours to 20 minutes
  • Improved the forecasting to an average of 30-35% MAPE
  • Improved material visibility <data-point>
  • Quicker response to forecasting changes due to custom integration between EBS and Demantra
  • Systematic alerts set up for scenarios where there was variation in Customer forecast above a certain predefined tolerance %

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