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Freudenberg Home and Cleaning Solutions: Operating more effectively in volatile markets with harmonised, enterprise-wide forecasting processes

Explore Freudenberg Home and Cleaning Solutions’ journey with SAP

Consumers rely on products from Freudenberg Home and Cleaning Solutions GmbH to keep their homes safe and hygienic. To keep pace with demand in fast-moving markets, the company needs to regularly adjust enterprise-wide forecasts. The planning capabilities in SAP Analytics Cloud provide rich, intuitive functionality to help planners work more effectively.

10

x

faster planning despite larger data volumes and greater granularity.

2

days to create an initial top-down production plan.

1

point of truth for all data and functions.

In a rapidly fluctuating market, forecasting is crucial for us. We need it to help ensure we produce enough of the right products at the right time and understand the impact of various planning scenarios on our P&L.

Franco Giacomini
Vice President Consumer Europe
Freudenberg Home and Cleaning Solutions GmbH

The Challenge

Harmonising planning and forecasting processes to improve decision-making

To keep homeowners around the world supplied with the cleaning products they trust, accurate forecasting is essential for Freudenberg Home and Cleaning Solutions GmbH. In a fast-moving market that faces continuing supply chain challenges caused by the COVID-19 pandemic, planners need detailed, enterprise-wide forecasting information at their fingertips to plan effectively.

 

However, a highly complex forecasting process involving thousands of planning objects and time-consuming, manual report preparation was slowing down planning activities. Different localised planning approaches made it difficult to get a consolidated enterprise-wide view. Meanwhile, separate value and volume planning led to variances between financial and production plans.

 

To address this, the company wanted to standardise and consolidate planning and forecasting across different regions and enable more-granular planning down to an individual product and customer level. In addition, it wanted to provide planners with access to both financial and supply chain data and enable them to run simulations to better understand the profit-and-loss impact of different planning scenarios.

By helping harmonise our planning processes across multiple regions and business functions, SAP Analytics Cloud enables us to align operational planning with financial performance.

Franco Giacomini
Vice President Consumer Europe
Freudenberg Home and Cleaning Solutions GmbH

The Solution

Creating a single point of truth for planning information

Freudenberg built an extended planning and analysis foundation that integrates its existing data warehouse with the planning capabilities in the SAP Analytics Cloud solution. The data warehouse is used to consolidate financial KPIs and sales data from the SAP ERP application and volume forecast data from the SAP Integrated Business Planning for Supply Chain (SAP IBP) solution. It then generates an automated draft plan for each sales organisation, and this is pushed to SAP Analytics Cloud for further processing by financial planners. This intuitive cloud planning tool enables them to plan both values and volumes, top down and bottom up, across many product categories and regions. And information flows smoothly into the financial planning process and back out to the demand planning system, closing the loop.

 

In-depth forecasting data is used by the sales, finance, and marketing functions. In addition, the production department benefits from detailed production bill-of-materials (BOM) breakdowns.

The Result

Pivoting quickly to address changing customer needs

By standardising forecasting processes across its consumer products division, Freudenberg has increased planning accuracy and enabled an enterprise-wide view. Forecasts now have greater granularity, combining both operational and financial data and containing details of product volumes and raw materials required as well as sales value.

 

Nontechnical business users can explore data and run complex simulations on their own using intuitive tools, without help from IT. Furthermore, less time is spent on repetitive report-preparation tasks, freeing teams for higher-value work such as analysis of upcoming trends.

 

The ability to understand the impact of variables (for example, price or cost of goods sold, or volumes) on profitability or on the supply chain helps Freudenberg make better-informed decisions. Ultimately, faster access to forecasts gives planners the information they need when they need it, enabling Freudenberg to react quickly to meet fluctuating demand in volatile business environments and manage the increasing complexity of supply chains.

Future Plans

Extending the deployment to include new regions and businesses

Since its initial implementation of SAP Analytics Cloud across EMEA, Freudenberg has been working on a global rollout to 51 organisations, including its professional division. In addition, the company is looking at enabling mobile connectivity to SAP Analytics Cloud to give planners fast and intuitive access to forecasting information while on the go.

 

Freudenberg also plans to enable predictive forecasts for simulations based on raw material and transportation costs with full integration of multilevel production BOMs for its product supply chain. Due to the success of the project, other business functions such as customer promotions and marketing have also asked to use SAP Analytics Cloud for their own processes.

SAP helps Freudenberg run better

Key business outcomes and benefits

  • Simplified and harmonised processes for financial, demand, and sales and operations planning
  • Faster access to forecasts with the wait for reports reduced from months to days
  • More-agile decision-making based on detailed analysis of a range of possible business scenarios and access to both financial and supply chain data
  • Better production planning thanks to a closed-loop planning process
  • Higher customer service levels while reducing inventory
  • Ability to extend the solution to other business functions and add intelligent features such as predictive analytics

Featured solutions and services

  • SAP Analytics Cloud for planning combines business intelligence, augmented and predictive analytics, and planning capabilities into one cloud environment.
  • SAP ERP helps you integrate core processes across finance, manufacturing, HR, supply chain, services, procurement, and others in a single solution.
  • SAP Integrated Business Planning for Supply Chain offers supply chain analytics, what-if simulations, and alerts to help you respond quickly to changing business conditions.

About Freudenberg Home and Cleaning Solutions

With a rich heritage of innovation dating back more than 170 years, Freudenberg Home and Cleaning Solutions GmbH has operations in 32 countries. From floor cleaning systems and household cloths to rubber gloves and laundry care products, the company’s portfolio includes household brands such as Vileda, O-Cedar, Marigold, and Gala.

Industry Region Company Size
Consumer products Weinheim, Germany 3,000 employees
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