CASE STUDY

Executive SummaryThe client is an advanced memory manufacturer that does extensive demand planning. The planning is required on a weekly basis and involves sales, marketing and demand management teams. The client required the help of HCL’s SAP APO (Demand Planning) and SAP ECC (ERP) to improve the forecast accuracy and reduce planning cycle time.

The CustomerThe client is an advanced memory manufacturer, designing and building some of the world’s most advanced memories and semiconductor technologies. Its offering comprises products related to computing, networking, server applications, mobile, embedded, consumer, automotive and industrial designs.

The Business ObjectivesThe client’s demand planning processes were fragmented, difficult to understand and inconsistent. Further, the sales and operations planning procedures were either ad hoc or nonexistent. The client didn’t have forecasting and demand planning-related metrics and targets. Such lack of resources led to faulty demand planning.

Further, the client didn’t have a consistent set of integrated planning and reporting tools. Formal maintenance of planning data at critical customer attributes level was difficult because the forecast generated and adjusted at disparate levels.

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Demand Formulation for an Advanced Memory Manufacturer

CASE STUDY

Based on the problems, the major needs of the client’s business were:

• Define the weekly demand supply planning cycle/process

• Build end-to-end planning/execution solution in SAP APO and ECC (from demand planning, supply planning to order scheduling)

• Integrate sales, marketing, finance and demand management within APO DP module to develop a consensus demand plan

• Integrate demand plan to order scheduling (GATP allocation)

– Defined demand planning hierarchy (product and customer hierarchy)

• Deliver a demand planning tool allowing:

– Forecasting based on product’s attributes

– Prioritizing demand that is based on product/customers/horizon

• Define supply chain metrics:

• Delivery performance

– Inventory turns

– Demand supply match

– Forecast accuracy

• Integrate planning processes after the acquisition of a Random Access Memory products company

• Align planning organizations between two companies

The HCL SolutionAfter using HCL Solutions, the client develops own forecast using APO demand plan module as a collaboration planning tool to share its forecast information. The demand plan created by demand management is a weekly plan at the Finished Good Part Number (FGPN) level for a 6-month planning horizon and drives SNP CTM (capable to match). The plan can also be integrated with order scheduling (GATP allocation).

The consensus forecast is a long-term demand plan (7–24 months) and will be consumed by S&OP process.

Solution Elements

• SAP APO (Demand Planning)

• SAP ECC (ERP)

What HCL did for the customer:

• APO DP designing that supports integration with SNP and GATP

• Viewing, adjust and manage forecast quantities at multiple levels within the advanced memory manufacturer planning hierarchy

• Enhancing communication and collaboration among the demand forecasting teams within the various advanced memory manufacturer Business Units

• Forecasting based on:

– Product attribute

– Demand prioritization

• Improving the visibility of demand and supply alignment

CASE STUDY

Master Data Product/

Customer/ Location & Attributes

Demand Plan

SAP ECC(MRP & LRP) APO DP

GATP

APO SNP(CTM)

BU-1

BU-2

BU-3

BU-4

BU-n

The Business Benefits Delivered• Using APO DP design that supports integration with SNP and GATP

• Using single point of forecast data into the S&OP planning process

• Viewing, adjusting and managing forecast quantities at multiple levels within the advanced memory manufacturer planning hierarchy

• Enhancing communication and collaboration among the demand forecasting teams within various advanced memory manufacturer business units

• Allowing forecasting based on:

– Product attribute

– Demand prioritization

• Increasing forecast accuracy

• Improving customer commitment by integrating demand plan with GATP allocation

• Improving the visibility of demand and supply alignment, which prompts proactive actions to planners

• Reducing planning cycle times

• Improving the ability to commit to the customers accurately

• Improving data integrity and accuracy between the planning system, execution system and reporting system

• Improving the visibility of forecast information across departments

• Lowering cost of systems operations

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The HCL Difference HCL helped the client get an understanding of the semiconductor requirement. Such requirements helped plan/forecast at a level higher than the material entered at the sales order line item or shipment restriction levels.

Contact: iSCM@hcl.com