Planning the material requirements

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