Lowering Forecast Error with Solutions from John Galt

  • www.honeywellcpg.com
  • SAP
  • Manufacturing

The Consumer Products Group (CPG) division of Honeywell produces a variety of car care products. These automotive aftermarket and OEM products include category leaders such as Autolite® Spark Plugs and Ignition Wire Sets, FRAM® Oil, Air, Transmission and Fuel Filters, Prestone® Antifreeze/Coolant and Car Care products, as well as Holts® Car Care products. Honeywell CPG is a $2 billion global business within Honeywell Transportation Systems with six premium automotive brands and approximately 7,500 employees Honeywell CPG’s demand planners needed to forecast consumer demand for automotive aftermarket products at the SKU level across eleven distribution locations. These products are sold at thousands of retail outlets including Wal-mart, Pep Boys and AutoZone.

Honeywell CPG’s forecasting requirements went beyond the capabilities of their ERP system from J.D. Edwards, so they began searching for a solution that could be easily added on. After careful consideration, Honeywell CPG’s supply chain personnel determined the Demand Management Engine from John Galt Solutions offered superior forecasting capabilities at a very reasonable price. Honeywell CPG joined a large number of John Galt customers who have used the Demand Management Engine to extend their ERP solution.

Since then, the solution was extended to SAP when Honeywell moved from JD Edwards to SAP. Over the last four years, Honeywell CPG has consistently improved forecast accuracy with John Galt’s Demand Management Engine. Forecast error has dropped by 25% while line fill rates have improved. The team at Honeywell CPG has also benefited from John Galt’s superior service – an industry hallmark.

“We’ve been really pleased with the support we’ve received from the John Galt team and their quick response to our requests,” stated Bob Lauer, Forecasting Manager at Honeywell CPG. Honeywell CPG plans to leverage their John Galt solution to improve forecast accuracy across even more aspects of their business. “Over time we plan to expand our forecasting to include our international sales as well as the original equipment side of our business, “ concluded Lauer.