Effective demand forecasting and resource planning for the global logistics company
A leading provider of Supply Chain Solutions operating in 80 countries.
A project division of the company, was awarded a contract with a leading oil&gas company after a contract with the previous subcontractor was terminated. Due to the fact that some of the planning managers were not retained under TUPE agreement, some of the project expertise was lost. Therefore, the planning process was a time consuming and requiring a lot of manual work. The process of producing actual activity's data and identifying discrepancies with the forecast was taking much time and the quality of prepared data was poor.
In the first phase of project implementation, monthly statistical data and system processes related to forecasting for the month ahead were optimized. To do so, an interconnection with company's expediting module was set up. Tables, data and formulas used in statistic and economic calculations were designed from the scratch including management KPIs.
In the second phase, more complex forecasting and actual data comparison tool was developed in Microsoft Access database. Number of various queries and reports were automated and adapted for current and future projects and more complex task was solved that incorporated monthly VOWD (Value of Work Done) reports and phased forecast to the end of project into one common database. This database could also allocate cost by different facilities and currencies.
The first phase activities allowed reducing manual input and time spent on VOWD preparation 5 times! The second phase implementation allowed reducing total time spent on preparation and analysis of statistical and forecasting figures from 3-4 weeks to one hour!!! Manpower resources involved in planning process were reduced by 50%.