Global consulting firm Capgemini helped US automotive supplier Johnson Controls develop a roadmap to improve operational and financial forecast accuracy, reduce forecasting cycle time and refocus efforts toward common global planning and forecasting.
Johnson Controls (JCI) is a global leader in automotive experience, building efficiency and power solutions. The company has 140,000 employees in more than 1,300 locations serving customers in 125 countries, with headquarters in Milwaukee, Wisconsin. When Johnsons Controls’ Automotive Experience Group (seating and interiors) recently acquired an electronics business in France, the company's global ERP template was deployed in the post-merger integration process, impacting existing processes.
As a result, the business team started to develop non-standard applications to meet their requirements so they could continue forecasting and planning business functions. In addition, a company-wide survey of the finance employees indicated significant challenges with the current planning and forecasting process.
To develop a solution, Capgemini conducted a global current-state assessment of Johnson Controls’ forecasting and planning processes (including sales, purchasing, operational plant and P&L/financials). The project also involved an analysis of pain points, benchmarking, identifying leading practices and the creation of a roadmap for the future.
The resulting future-state roadmap identified opportunities to achieve measurable benefits, including reduced forecasting cycle time of up to six weeks, reduced FTE effort in forecasting and planning through process efficiencies and reduced cycle times, and a refocusing of efforts toward a common global planning and forecasting initiative.
"In today's economy, automotive companies must have constant and accurate information on how they are financially performing against their annual operating plan," says Monte NuckolsExecutive Director, IT, Finance & Purchasing Systems, Johnson Controls. "The expertise of the consultants was demonstrated throughout the project. The team from Capgemini clearly defined the planning and forecasting process used by the Automotive Division of JCI. The Capgemini team also pointed out numerous inconsistencies in our processes and recommended improvements through the application of best practices."