By applying integrated planning to support decision making the supply chain PA Consulting Group cut MAN Diesel's time and resources spent on firefighting by up to 90%.
Formed by a number of M&As, MAN Diesel was a cluster of independent companies with individual business models, different business processes and unique IT landscapes. Each location defined its own planning horizon, inventory policies and forecasting principles, so lacked an overview of supply and demand. MAN Diesel struggled with order backlog problems, not being able to provide reliable delivery information to customers. To overcome these problems global integrated planning was implemented.
Using our experience in obtaining operational efficiency and exploiting synergies between business units, PA supported the transformation programme ‘OneDiesel.’ This aimed to go from local to global with common business principles, processes and IT platforms.
In eight months, from concept definitions to completed implementation, PA achieved more flexibility and responsiveness in the supply chain through:
planning hierarchy - a reduction in time and resources spent on fire fighting of up to 80-90%
universal forecasts - reliable delivery dates based on correct information from production increasing customer satisfaction and enabling stock reductions
clear roles and responsibilities - increased company-wide collaboration across functions with a common objective
central supply chain function - a more agile and flexible supply chain with a better foundation for decision-making.
As a result of the consolidated overview of anticipated future demand and available supply capacities, MAN Diesel’s Executive Board now has a solid foundation for investment planning and adjusting the capacities across all units.
“The new integrated planning processes and easy-to-use tool will save time and secure one-point-of-truth.” - Michael Madsen, Group Purchasing, MAN Diesel