Project Description

About The Client

A Belgian company has been a partner to the furniture industry since 1967. As a distributor of hinges, lift systems and drawer systems for kitchen and interior builders, they have been the market leader for years. They have been exporting to Switzerland, France, Germany, the United Kingdom and Israel. Thanks to its 220 dedicated employees, and ongoing investment in technology and automation, the company is growing year on year.

Problem

The client was not confident of using the standard Forecasting functionalities which are available in AX with different forecasting models due to the unpredictable demand fluctuations, Demand variations from Key / Long term Customers and local competition impact on sales etc.

Considering the current economic scenarios, the client wanted to have options to add their own sales volume predictions for a specific period along with the past weeks data. They believed that without these additional inputs / changes in forecast, the outcome may not be accurate and the same will lead to stockout or excess inventory situations.

The client’s business is purely driven by the product stock volumes and Safety stock to meet the demand variations. On the other hand, any inaccurate outcome of the forecast may push the business into losses due to excess stock / non-moving inventory in the long run.

Solutions

Korcomptenz developed a customized sales forecasting process which will take into account the previous period sales like previous 52 weeks or less for new products based on the introduction date and it accommodates Sales Teams manual forecast inputs which will be different from the previous period sales and in some cases it may be a negative or nil sales volume based on their market interactions and inputs from key customers.

The program also has the facility to add remarks for these forecast changes which will help the users to understand the forecast output variations. For the products where the previous sales volume is considered without any changes, options are provided to maintain seasonal factors, weighted averages etc. to bring out more accurate results from the automatic forecast calculation.

The program uses both automatic forecasting features and the manual forecasting values to bring out the final projected sales volume and other needed information.

The forecast process outcome will also provide various additional information like rectified weekly sales, various classifications like ABC, XYZ, new safety stock levels etc.

The forecast output is used for the Material Requirement Planning (MRP) run and the rest of the processes after the MRP run is carried out by the users as usual.

Results

The Customized Sales forecast program successfully delivered the expected output along with the additional information like Safety Stock, ABC / XYZ analysis.

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