Integrated Business Planning

Challenge: A global construction products client faced a 2-3% year-over-year increased cost of goods sold in a highly competitive and price-sensitive marketplace. The client challenged Audere Partners to eliminate systemic cost drivers in its Supply Chain decision-making to determine Demand, Supply, Inventory, and Customer Service Policies.


Finance drove demand planning in a vacuum (Demand expressed in dollars, instead of production units)

Forecasting process (driven by Sales) was consistently too optimistic and failed to deliver 12 quarters in a row

Planning processes were inconsistent across businesses and/or products, with limited input from the Sales organization, and are a key driver of slow-moving inventory

A high degree of End-of-Month and End-of-Quarter promotions created a whiplash across manufacturing

No clear decision-making ownership or accountability for the Planning process

Supply Chain practices and processes are very manual, fragmented, and are heavily people-dependent

Excess and slow-moving inventory across the distribution network

Warehouses have low technology utilization to effectively and efficiently manage physical inventory

Customer service policies were loose and eroded the client’s profitability


Implemented a cross-functional integrated business planning process for medium to long-range planning of demand and supply, which included key stakeholders from sales, product management, supply chain, manufacturing and Finance

Business Process Reengineering

Eliminated End-of-Month and End-of-Quarter promotional activities

Business Process Reengineering

Implemented the following capabilities: material resource planning (MRP), batch management, logistics dock scheduling, and warehouse management system

Technology Enablement and Supply Chain Management

Hard-coded into SAP customer accommodation business rules and developed an exception approval process with Delegation of Authority

Technology Enablement and Supply Chain Management


Results of our engagement include:

Reversed COGS trend and delivered a 9:1 payback ratio for our client

Achieved a 1.1% reduction in COGS ($11.2M): $7.5M benefit achieved by smoothing monthly/quarterly demand swings $3.7M benefit achieved by systematically charging customers for non-standard order requests Ongoing multi-million dollar inventory reduction

Fundamentally shifted organizational behaviors to reduce price giveaways, overtime, and expedited freight

"We have tried to implement IBP in the past several times, but I think this time we finally got it right. Audere Partners brought in the implementation discipline we sorely needed to get our organization focused."

Supply Chain VP

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