Planning the material requirements

Quantity requirements planning across all business areas on the basis of
of the procurement history increases planning reliability.

Challenge

  • The aim is to develop a dashboard that displays material consumption at different granularities

  • In addition, an algorithm is to be developed that predicts material requirements in order to have a more precise purchasing lever of quantity commitments and price scales.

Solution

  • Linking of purchase orders, framework agreements, scaled quantities and prices, quantity commitments, call-off information and material master data

  • Categorisation of master agreements and master agreement items based on term, target value and quantity commitments

  • Investigation of ordering behaviour and price variance at material number level

  • Creation of a forecast model using ML methods on the basis of historical order quantities at material number level per business area

Result

  • Mapping actual data on material consumption at different granularities using KPIs

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