1. Challenge Overview

Disconnected Forecasting and Execution

High-level inputs weren’t usable day to day: 

  • Annual forecasts provided limited guidance for weekly or monthly production. 
  • Order visibility was too short-term to react properly to supply disruptions or demand shifts.

No Structured Forecast Cascade

Forecasts didn’t translate into production: 

  • There was no process to break down vehicle-level forecasts into part-level production signals. 
  • This created inefficiencies in inventory management and plant-level planning.

Lack of External Signal Integration

External trends were missing from the logic: 

  • Broader market trends (e.g., GDP shifts, vehicle mix changes) were not reflected in the planning logic. 
  • The system could not proactively respond to volatility.

2. Solution

2-Day Strategic Planning Workshop

  • Facilitated by IBP Ready to align key stakeholders on forecasting logic and planning flows.
  • Designed a planning engine that cascades forecasts from OEM vehicle volumes to part-level requirements.

Forecast Cascade Logic

  • Top-down breakdown from vehicle models to components and manufacturing plants.
  • Structured inclusion of external factors like market trends, seasonality, and disruption risks.

Future-Proof Planning Roadmap

  • Created a step-by-step plan to build the new planning engine inside or outside SAP systems.
  • Defined data sources, roles, and KPIs to track improvements.

3. Results

Structured Forecast Cascade

A clear logic to connect OEM demand to plant-level planning across the global network.

Increased Agility

The new process reduces risk of overproduction and helps teams respond earlier to demand shifts.

Foundation for Implementation

A realistic roadmap that can now be used to develop the planning engine and guide system configuration.