Case studySALES PLANNING IMPROVEMENTS

Sales planning is a crucial activity for our client – a large car producer, where the sales plan is the backbone of production planning. By planning sales: the sourcing department knows which (and the amount of) material needs to be negotiated and secured from suppliers, the logistics department can calculate the amount of deliveries coming into warehouses, the production department can see how many cars need to be produced in the following weeks, etc.

Our client had inefficiencies in the planning processes. The planning department was flooded with repetitive manual work (copying data from one spreadsheet to another, manually overriding exceptions etc.) instead of adding value; focusing their planning strategy and logic.

Therefore, ABC was invited to deliver a deep review of the existing processes, summarise the biggest issues, and implement solutions. The results improved the sales planning process significantly, including new tailor-made software development and implementation, along with automation of several steps that were previously manual. The biggest potential was hidden in a very simple fact – planners did not take into account the actual demand from the market sufficiently. So, even if there was low demand for a given car type with given equipment was, planners had in their plans for some of these cases that the demand in the near future will be high. Incorporation of the “comparison of real demand with the short-term plan” into actual plans was one of the biggest improvements implemented.