Client situation
As a semiconductor supplier, the client is highly exposed to volatile customer demand. Surging AI and data-centre demand required rapid capacity decisions, while an earlier downturn had left major excess and obsolete inventory. The client needed to validate customer forecasts, define a committable demand level, and expose its liability.
The client is a precision optics manufacturer serving the semiconductor industry, where it is highly exposed to large swings in customer demand. The client hired Pacellico to introduce a full S&OP process, with validation and alignment of customer forecasts, defining a demand level that could be committed to customers, and planning the supply needed to ramp to volume.
Our approach
Pacellico built a solution on SAP IBP, extracting data from the client's Axapta ERP to run MRP simulations across a range of demand scenarios. This revealed the true constrained plan from a capacity and material perspective, enabling actions to address constraints and selection of the optimum scenario to commit to the customer.
Solution and outcome
The Pacellico S&OP application imports original customer forecasts and reconciles them against open orders in the client's system for a clean, validated demand picture. Key Account revenue forecasts beyond the customer horizon are exploded back to product quantities, then challenged at formal demand review meetings before supply scenarios are run in IBP. A Supply Review Meeting challenges the actions proposed to maximize output under constraints, and Executive Management approves the scenario for execution. A monthly waterfall analysis exposes liability at component and product level.
- True visibility of the full business to drive investment and capacity decisions
- Confident management of the ramp to volume during the AI-driven demand boom
- Validated, credible demand commitments to customers