Situation
An automotive manufacturing firm sought to optimize its operations by implementing a Sales, Inventory, and Operations Planning (SIOP) process. The objectives included improving capacity planning, enhancing CAPEX forecasting, and fostering cross-functional alignment to support growth and efficiency.
Task
Lighthouse Consultingswas engaged to:
1.Implement SIOP Processes: Establish a structured SIOP framework to synchronize sales, inventory, and operations planning.
2.Enhance Capacity Planning: Develop accurate capacity planning methodologies to meet demand fluctuations.
3.Improve CAPEX Forecasting: Create robust capital expenditure forecasting models to support strategic investments.
4.Foster Cross-Functional Alignment: Align various departments to ensure cohesive decision-making and strategy execution.
Action
To achieve these objectives, Lighthouse Consulting:
•SIOP Implementation: Established regular SIOP meetings with cross-functional teams to review performance metrics and adjust plans as necessary.
•Capacity Planning Enhancement: Utilized advanced forecasting tools to model future demand and supply, enabling effective capacity planning.
•CAPEX Forecasting Improvement: Developed automated forecasting tools serving as the “source of truth” for business leadership alignment, enabling broad usage across functions for material, production, and capacity planning.
•Cross-Functional Alignment: Formed a SIOP team with representatives from sales, production, inventory management, finance, and other relevant departments to drive the SIOP process and ensure alignment.
Results
The project yielded significant improvements:
•Operational Efficiency: The new processes reduced past due orders by 85% and improved on-time delivery, enhancing customer satisfaction.
•Strategic Investment Planning: Improved CAPEX forecasting enabled better alignment of financial plans with business objectives, supporting growth initiatives.
•Enhanced Collaboration: Regular SIOP meetings and a unified approach fostered a culture of teamwork and shared goals, improving overall supply chain efficiency.
