The forecast accuracy to product demand from sales funnel was around 61% prior to the introduction of the architecture. This led to an appreciable increase in inventory and the stock held was twice the sale. The problem was further compounded in the COVID pandemic leading to demand contraction and increase in the inventory holding cost.
To align the sales process in line with the dynamics of the market, the PRISM with the launch of the PRISM 2.0 Sales process was launched in 2019 focusing on improving the reach in the market and targeting the right customers. The process enabled the ease of information capture into the sales funnel thereby leading to improvement in visibility of the customer intent to buy.
Project Goals & Strategy
Ashok Leyland's Project Objectives were to achieve Cost Reduction, Productivity Improvement and Revenue Generation.
Business process Models were created for Sales, Production, Finance, Central Planning, Business Analytics in support of the above strategies.
System Architecture was developed to support the above Business Processes by creating system functions for CRM, Demand Estimation, Production Planning, Enterprise Data Systems.
Technical Architecture was created enabling the System Architecture for components such as Dynamic Production Planning, Forecast Algorithms.
Implementation of the Technical Architecture was achieved through products including Demand Production Planning Tool.
The tangible benefits realized by implementing the architecture included:
· Reduction in the Stock to Sales Ratio to 1.3 in FY ’21 from 2.0 in FY’20.
· 35% reduction in Inventory in FY’21 over FY’20.
· 40 Crore Rupees savings in terms of interest cost on inventory saved.
· 1000+ Savings in man hours because of intelligent Production Plan Builder Tool eliminating the need for manual intervention
Ashok Leyland "B Improving the accuracy of Demand Prediction from the Sales Funnel and integrating with production planning to optimize inventory" Program won the Award - Best Digital Architecture in Sales Function Category.
About ICMG :
ICMG is a leading full-service Enterprise & IT Architecture Firm, providing architectural services to a wide variety of clients (over 20 domains) across 40 countries. For nearly 20 years, we have specialized in making visions into realities by supplying “architecture ideas & models” to more than 1600 organizations across the world. In the last 14 years, ICMG Global Architecture Rating & Excellence Program, which is driven by an independent jury, has become a global benchmark of excellence with the leading companies across the globe participating every year.
ICMG Architecture Ratings: https://www.architecturerating.com
Winners 2021 : https://www.architecturerating.com/global-winners-2021