Challenges

• Unpredictable swings in commodity prices.
  
• Macroergonomic uncertainty.
• Market price volatility.
• Inability to change market position with speed (Buying or Selling)
• Understanding the impact on P&L (Finished Good Spend)
• Understanding the impact at individual product cost level to trigger targeted pricing decisions.

The client needed an intelligent solution to analyze the impact of macroeconomic fluctuations such as in commodities and FX rates on company performance by merging financial, supply chain and external market data using a real-time analytics and forecasting models.

Functions Involved

Supply chain 

• Finance
• Procurement

Our Transformation

We leveraged AX Connect to integrate on premise and cloud-based Anaplan platform to deliver a holistic approach to supply chain management by enabling real-time visibility across the network, creating the ability to sense and drive demand, and facilitating a dynamic, collaborative planning process.

1. Implemented a Single Global Forecasting Process, enabled through E2E Technology.
2. Harmonized cross-regional cluster processes.
3. Delivered timely availability of Finished Good Spend impacts.
4. Enabled bottom-up calculation from leaf-BOM level of detail.

Benefits

• End-to-end capability to link commodity price and other relevant cost drivers to the product profitability.
• Insight driven and forward-looking analysis by generating trends and forecast figures on demand to be up to speed with the changing environment.
• Digitally powered solution with predictive analytics that goes beyond traditional reporting.

Key Highlights

• ~1M SKUs from which Finished goods spend is calculated.
• 10 What-if Scenarios handled in parallel.
• 10.5 cells calculated in real-time.
• < 5 full solution refresh time.