IBP implementation at a compact equipment manufacturer
Not merely the path of raw materials through the various processing stages to the final product, but distribution, finance, production, and suitably trained personnel influence supply chains
Strategy/Digitisation and organisation
Manufacturer of light and compact equipment
Our customer, a leading manufacturer of construction equipment and compact equipment, relies on Integrated Business Planning (IBP). This group of companies – with decades of experience in the building industry – now employs more than 6,000 people worldwide. With over 50 global subsidiaries and 140 of its own sales and service bases, the company offers a wide range of products and comprehensive services. Its main areas of business are the sale, rental, and servicing of construction machinery.
Despite high stock levels of finished products, there were delays in delivery, an outcome that could be attributed to inefficient planning due to high complexity.
A wide product range and lack of system support often increase complexity and manual effort in planning. When individual locations in global corporate networks plan locally, transparency suffers. This isolated view of processes is usually accompanied by local data storage. Silo thinking and conflicting goals between sales and production counteract reliable planning values. This all leads to insufficient information exchange and impairs responsiveness and failure safety.
Together with the customer's international project team global standard processes for sales, procurement, and production planning were defined, factoring in the particular features of various business areas.
Planning now takes place as part of the monthly IBP cycle. The introduction of integrated planning creates a uniform plan and defines the expectations of sales and production in clear service level agreements.
Results at a glance
- Establishment of a demand management department
- Decision-making in monthly IBP meetings
- Uniform use of the new software solution
- Reduction of time spent in the planning process
- Inventory reduction by approx. 20 %
- Increase in customer satisfaction