To succed in today’s uncertain, volatile market, it is vital to have two main characteristics as part of any Aftermarket organization – ability to predict and agility to react. Unlike supplying to original equipment manufacturers, the demand is very erratic and the supply chain too long. Some of the major challenges in Aftermarket spares are – predicting the demand, ensuring in-time manufacturing and harmonizing the entire supply chain to react to this demand.
The focus of current planning model in organizations is exclusively inward-driven. Market and external factors are ignored leading to huge inaccuracies and unexpected demands. These models are also unable to effectively use data like secondary sales, competitor data, seasonal data, past schemes, etc for forecasting. Even the incentive schemes and promotions are planned without systematic procedures.
Bosch Engineering and Business Solutions has developed a solution “SaPHAL” to predict sales accurately and drive intelligent marketing schemes considering diverse factors using SAP HANA and Predictive Analytics. SaPHAL is the next generationforecastign toolpowered by SAP HANA that will accurately predict sales using complex algorithms that take into account diversity of factors – Rainfall, Secondary Sales, Stock Coverage, Competitor Information, Vendor Fulfillment as well as past sales history.
SaPHAL provide a fresh outlook on sales planning by accurately foretelling the demand from exogenous variables with a proven algorithm – Vector Auto Regression – that captures the cross effects of these variables in relation to time. With the help of VAR and instant simulation of scenarios, the sales team and the product managers will be able to react quickly to market dynamics powering the entire supply chain.