Cherkizovo halved demand planning time for all segments with SAP IBP

2021: Reduce demand planning time

On November 9, 2021 SAP CIS reported that the Cherkizovo Group cut time of planning of demand on all segments by half and as much as possible increased specification depth by means of SAP Integrated Business Planning (SAP IBP). The accuracy of financial planning and the validity of decision-making have also improved. Scenario planning and comprehensive results analysis are available. The implementation partner was EY.

At the time of the start of the project, Cherkizovo already had a well-established sales planning process on the weekly and monthly horizons. Planning was carried out with high accuracy. However, due to insufficient detail and the significant influence of the human factor data , the service suffered when reducing. There was no complete understanding of how to improve accuracy and analyze errors.

The project team has developed a procedure and timing for creating a sales forecast for four integrated planning horizons (short-term, medium-term, long-term, strategic). It was important to consider the operational specifics in the Ultra Fresh category. All master data - from the client base to the products - passed the alignment, cleaning and approval procedures. In order to check the correctness of the sales plan data, integration of accounting systems was made.

Also, a reliable basic sales forecast was formed as a foundation. Based on basic sales and actual promo data, the team created a reliable library of promo pros (inputs for calculations in other programs). They developed a special upper-level assessment of restrictions on animal anatomy in the process of demand planning. In addition, the project implemented a financial automatic assessment of sales plans.

As a result of all the changes, the company has a reliable base for the next stage of the project - automation of production planning.

We used the cloud from SAP in large IT solutions. It was a project of a different level, without analogues in the world, which required all our efforts to implement it. Thanks to the understanding of the peculiarity and scale of the project, comprehensive support of the management, the company received a tangible result in the form of an actual planning process, "said Evgeny Subbotin, Director of Logistics and Supply of Cherkizovo Group.

Cherkizovo is doing a lot to digitalize its production, using current technologies and innovations. The planning and forecasting process is a very important component of the business for such a large holding as Cherkizovo, which supplies its products to stores and restaurant chains. And in the era pandemiyny of restrictions, the issue of timely deliveries began to play an even greater role. SAP IBP has allowed the company to get a reliable base for constantly improving the necessary ones, and business processes customers have a clear timeline and a high level of service, "said SAP Managing Director for Partner and Fast-Growing Companies in and. Russia countries CIS Alexander Metechko

The project was a special one in terms of the realized detail of the forecast and the degree of transformation of demand planning processes, and therefore the requirements for the SAP IBP system. Improving the quality of the forecast is an iterative process. In addition to improving accuracy by using customized algorithms for each segment, a single platform helps coordinate the plans of all involved departments. The system provides high transparency of plans and multifactorial analysis of deviations, which allows a systematic approach to improving the quality of the process, "said Alexei Ammosov, partner in EY consulting practice.