Automated SKU level Connected Planning solution to link Demand Plan with Gross Margin for a leading foam, sleep & comfort solutions leader
Key Outcomes
Streamlined end-to-end planning and budgeting processes
Enhanced collaboration and data accuracy
Better planning capabilities
Better control over workforce-related costs
360-degree view of actual vs planned data
The Client
The Client is a prominent leader in the production of sleep and comfort solutions, encompassing the entire value chain. The Client specializes in designing, manufacturing, and delivering a diverse range of mattresses, toppers, and pillows under an expanding portfolio of proprietary brands. Their products are distributed across a wide spectrum of retail channels. The Client boasts a portfolio of over 400 patents, spanning various industries, including bedding, furniture, and engineered solutions for the medical and transportation sectors.
The Challenge
- The Client’s legacy manual Excel-based planning and reporting process was leading to delays and manual errors in the reporting.
- Planning and budgeting models in Excel were not able to capture details sufficiently. The Client required a flexible and fully integrated solution.
- Need to plan employee level cost for plant labour force
- The Client team wanted to integrate demand plan and gross margin plan data at the SKU level with their SAP system
- It is essential to calculate the Gross Margin at the SKU level based on price, discount, dealer margin etc. drivers. The Client needed to be able to update the plan quickly to perform scenario analysis and forecast cycles
The Solution
Constellation created a unified, connected planning platform that covered the following processes:
- Planning and Budgeting with monthly forecast
- Actuals reporting at SKU and Customer level
- Management Reporting
- The unified platform enabled end-to-end, fully connected planning and budgeting processes including sales, production, inventory, and gross margin functionalities.
- The platform has enabled automated employee-level workforce planning for SG&A and Direct Labor planning. The impact of exiting employee changes and new hires on the planned net income can now be seen on real real-time basis
- Flexible Gross Margin planning at the SKU level. This meant The Client would now be able to create the budget and plan faster, including the employee-level workforce cost calculations.
- The fully connected planning and budgeting solution allowed for streamlined reporting and integration.
Outcomes
- Automated Planning: The Client now operates on an automated connected planning solution using the Anaplan platform, significantly reducing manual effort and enhancing data accuracy.
- Data Integration: Integration with HFM and SAP systems has enabled employee-level workforce planning capabilities, enhancing agility in managing workforce costs.
- Dynamic Workforce Planning: With integration with ADP, The Client better plan and report items like Gross Margin by SKU, Customer, SBU and Plant level providing a 360-degree view of actual and planned data.
- The solution gives The Client the ability to prepare a multi-year operating plan and monthly forecast.