THE PROBLEM:
- The company had been working on the process of planning and collaboration of the demand without a technological tool that would support the process.
- Derived from a semi-mature process of collaboration with the commercial area, the greatest challenge was to sell the idea to the commercial area.
- The lack of long term visibility in the demand plan determined a limited horizon for planning (1 week in the future).
- They did not have a convenient way to collaborate with the different levels of aggregation and disaggregation of the demand
- They were looking for a way to improve integration with the commercial area, applying advanced statistical models in order to improve the veracity of the prognosis and the demand plan.
- Improve the level of service.
WHY SAP WAS CHOSEN:
- Because the company was already familiar with the SAP environment.
- Because the solution was easy to use, it was practical and simple to adapt the tool to the process of prediction and collaboration.
- The DP solution could be designed in accordance with the specific necessities of CIAL.
BENEFITS OF THE TOOL:
- With SAP APO, the collaboration is carried out in an integrated manner.
- The data load is generated automatically from SAP ECC, for analysis and correction and a prognosis is generated based on different advanced
- statistical models.
- This allows for faster demand planning, making the process of collaboration simpler and more integrated. Additionally, the demand plan has visibility for the following months and simplifies the evaluation of the input from the commercial area and the final demand plan.
BENEFITS OF THE BUSSINES:
- Greater foresight of the plan, on both tactical and strategic levels.
- Facilitates the integration of the collaboration.
- Before implementation, the planning process was carried out weekly with only one person in charge who generated a prognosis and sent it to the commercial area for their collaboration. The information from different Excel files was consolidated and reviewed later.
- The solution was designed to simplify other processes, such as generating the annual budget.
- After implementation, a 4.2 percent improvement in prognostic error (from 19.5% to 15.3%) and a 2.1% increase in service (90.7% to 92.6%) were achieved.
“In the planning of the supply chain, it is fundamental to show excellence in the process of demand estimation and planning since it allows a reduction in inventory, optimization of production resources, efficient synchronization of the different tasks and activities of the operations area, and improves service level. All of these aspects were improved after the implementation of Demand Planning. Additionally, it contributed to the creation of a culture oriented toward processes and team work”.
Christian Miller, Logistics Manager of CIAL Alimentos
About Sintec
Sintec is the leading consulting firm focused on generating profitable growth and developing competitive advantages through the design and execution of holistic and innovative Customer and Operations Strategies. Sintec provides a thorough and unique methodology for the development of organizational competencies, based on three key elements: Organization, Processes and IT. Furthermore, Sintec has successfully carried out more than 300 projects on Commercial Strategies, Operations and IT issues with more than 100 companies in 14 countries throughout Latin America. Our track record of more than 25 years makes Sintec the most experienced consulting firm in this area of expertise in the region.
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