Reduce Inventory Costs
Billion $$ global tier one auto supplier reduces inventory costs
- What: Saphran integrates with Oracle ERP to incorporate EDI releases and ship history with rolling forecast
- Transformation: Streamlines comparison of EDI releases, ship history and forecast with analytics to identify largest variance parts. Results in saving nominal $70 million (35%+) in inventory costs year-over-year with improved long-lead parts ordering.
Increase Capacity Utilization
Multi-billion $$ forging and casting supplier increases capacity utilization
- What: Saphran integrates manufacturing bill-of-material routing data and cycle times for parts from Plex ERP and QAD ERP into the rolling forecast
- Transformation: Enables forecast analytics for capacity utilization of each manufacturing asset 5 years into the future. Commercial evaluations of new business leverage analytics showing where capacity is available, or when no more capacity exists. Client reports increases in capacity utilization and high confidence in capital expenditure for additional capacity
Commercial Discipline for Growth
Large electronics manufacturer grows sales with commercial discipline around product opportunity management
- What: Saphran implements rolling forecast toolset that downloads updates of OEMs’ future product plans from 3rd party market forecast source
- Transformation: Client’s product management team collaborates with sales to load forecast system with early stage target opportunities to supply its product content for future OEM programs (pre-RFQ stage). Sales commercially focuses on and advances opportunities as known future OEM programs move closer to launch, assuring the sales teams do not miss relevant target opportunities for growth with OEM customers. Client reports analytics on win/loss performance and competitors’ market share.
Reduce Capital Expenditure
Medium-sized steel parts supplier defers capital expenditure via rolling forecast with scenarios
- What: Saphran implements rolling forecasts with market volume scenarios functionality
- Transformation: Rolling forecast analytics revealed that this manufacturer, even under optimistic OEM market volume scenarios, did not require a planned capacity expansion. This resulted in savings of over $15 million in budgeted capital expenditure for a $250 million manufacturer.
Compress Forecast Build Time
Medium-sized supplier compresses time to create forecast…becomes shared rolling forecast for Finance and Sales
- What: Saphran quickly implements collaborative best practice rolling forecast system. Connects with company’s multiple ERP installations.
- Transformation: Rolling forecast toolset enables collaborative, live forecast process with participation of the global sales team, and incorporates 3rd party market volume forecast updates. Time required to build forecast drops from 2 months to rolling every day. Forecast frequency moves from quarterly to always on. “Composite forecast” shared by finance and sales teams reports recent months actualized sales, 24 rolling future months, plus five more calendar years.
Improve Hedging and Negotiation
Global fastening supplier hedges materials and improves negotiations with vendors
- What: Saphran connects rolling forecast with numerous client ERP systems to draw engineering bill-of-material data for quantity and cost of key resin(s) used per supplied part.
- Transformation: Forecast analytics report to procurement the demand quantity of key resins across the enterprise years into the future. Procurement leverages the forecast data to create effective hedging strategies and improve negotiations with vendors knowing exactly quantity of key resins it needs.