Forecasting and Sales & Operations Planning Case Study | AlixPartners

Forecasting and Sales & Operations Planning

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Situation

$500M merger of two global adhesive businesses
Serving the demanding electronics and automotive segments
Identified $50 million in supply chain savings and synergies
However, supply chain synergies were dependent upon integrated customer facing processes
Customer facing processes proved difficult to combine

Actions Taken

Analyzed historical demand patterns and key market drivers
Developed sales forecasting process and built Excel-based forecasting model
Defined capacity utilization metrics and reporting processes
Combined forecasting and capacity reporting to create a reliable sales and operations planning (S&OP) process

Results

Forecast accuracy is consistently within 3% of actual results on a monthly basis
Customer service levels, measured as Orders On-Time In-Full, improved from 85% to 98%
Inventory levels declined 20%
Most importantly, the business was able to proceed with the plant consolidations and realize the supply chain savings

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