Optimizing volume and price planning in a global manufacturing environment
Area of collaboration
System implementation
Industry
Manufacturing
IBM Planning Analytics
About the client
Our client, an international manufacturer operating across five global regions, faced this challenge every quarter. The finance team spent weeks consolidating data from scattered Excel files. Each region used different KPI definitions and formats, which led to errors and decisions based on inconsistent data.
CHALLENGES
Symptoms you should recognize in your organization
Instead of analyzing data, the team spent their time organizing it. The company was unable to respond quickly to market changes, and planning was based on simplifications and unverified assumptions.
Information chaos
Lack of a unified tool for volume and price component planning
Delayed and unreliable reports
Data silos and inconsistent formats across departments
Low productivity
The team wastes time manually mapping data from sales and logistics departments
Difficulties in comparing data across regions
Prevents objective performance evaluation
Delayed planning processes
The lack of automation meant the process required constant manual handling
Lack of control over the planning process
Difficulties identifying where and when changes were made
Centralized planning that reduces reporting time from weeks to minutes
We implemented a centralized planning environment based on IBM Planning Analytics, which integrated previously fragmented processes while retaining the familiar Excel interface. Thanks to multidimensional modeling, decision-makers can analyze data from multiple perspectives and make faster, more informed decisions.
Key elements
A single data source
Data entered locally by users is sent directly to the central data cube, eliminating the risk of human error.
Working in the familiar Excel environment (PAfE)
Without requiring users to change their habits.
Dynamic analysis and "what-if" scenario modeling
IBM Planning Analytics Workspace (PAW) provides real-time data visualization and reporting, allowing decision-makers to evaluate various business scenarios before execution
Automated currency conversions and KPI calculations
Eliminates manual calculations by automatically applying current exchange rates.
From untimely planning to full control over the process
Following the implementation of the solution, financial planning evolved from a chaotic set of activities into a structured, repeatable cycle with clearly defined roles and responsibilities. The planning process was standardized and broken down into distinct stages, each assigned to specific teams – from volume updates and price components to the final data review conducted by the controlling department.
All data is centralized in a single data cube, allowing for multidimensional analysis and real-time reporting in both Excel and web-based interfaces.
Importantly, the system enables an immediate response to changing market conditions, such as currency fluctuations or rising raw material prices, allowing the client to stay ahead of the competition by quickly adjusting their pricing strategy.
Benefits
From delayed responses to rapid market reaction
Elimination of costly human errors
A standardized process eliminated common Excel errors – from incorrect formulas to faulty currency conversions.
Unlocking the potential of the finance team
Analysts are able to concentrate on analysis and the identification of business opportunities, rather than on time-consuming manual data consolidation and organization.
Increased transparency and change tracking
All changes are tracked and monitored, which increases accountability for the data.
Accurate profitability calculation
The system enables precise calculation of unit production costs by utilizing automated, multi-level cost allocation processes.
Effective margin management
Through the inclusion of all cost elements and real-time recalculations.
Automatic consolidation and currency conversions
Data is accessible in local and consolidated group currencies, eliminating the risk of conversion errors.
Outpacing the competition in strategy adaptation
Thanks to “what-if” scenarios, business decisions are made based on multidimensional simulations, enabling proactive rather than reactive management.
Greater independence of business teams
With the administrator role in place, the process can be entirely managed independently of the IT department.
From decisions based on faulty data to “what-if” scenarios
Today, the client’s team operates on a single, unified database—eliminating manual file consolidation and Excel-related errors. Reports are available instantly, and decisions are made faster because responding to changes in sales or costs takes minutes instead of days.
However, the most significant transformation lies in the decision-making approach itself. Instead of relying on incomplete or erroneous data, the team can now test various “what-if” scenarios and predict the impact of market changes on the company’s performance before making decisions.
This is not just a time-saving improvement but a fundamental shift in risk management and building competitive advantage.
Growth
Basis for continued growth
The implemented solution is just the beginning. Thanks to IBM Planning Analytics, the client has gained a platform that can be easily expanded without significant investments. The next steps will enable:
Cash flow forecasting
improved liquidity control
Implement advanced margin modeling
for dynamic management of sales channel profitability
Create a comprehensive operational planning system
integrating sales, pricing, production resources, inventory, and supply chain
Develop AI-powered predictive models
to forecast trends and prepare for the future
4 key lessons from the financial planning transformation
The transformation of planning did not begin with selecting a tool, but with asking a fundamental question: why, despite the effort, does the process not work as it should?
Attempts to fix the situation with additional files and manual work only deepened the chaos. Therefore, we first mapped the biggest pain points in controlling to relieve them and enhance the team’s efficiency.
Based on over 300 implementations, we present four proven principles that you can apply in your company.
1
Diagnosis before technology
Planning doesn’t fail because the process is flawed, but because everyone does it their own way.
Analyze the last planning cycle – count how many file formats were used, how many versions existed, and how many hours were spent manually consolidating data. This simple analysis will reveal the true sources of inefficiency.
2
Appoint a process owner
Wdrożenie narzędzia nie przyniesie rezultatów bez jasno określonej odpowiedzialności. Implementing a tool will not yield results without clearly defined accountability. The business administrator role changes everything – it enables end-to-end planning management without constant IT involvement.
Identify a person who combines business and analytical skills to take on this role -not merely as a meeting coordinator, but as a true operational leader.
3
Maintain continuity during change
The best transformations preserve the strengths of the existing process, eliminating only the bottlenecks.
Don’t create a new process – improve the one you already have. Map the current information flow and identify the 2–3 biggest bottlenecks to eliminate.
4
An external perspective helps avoid repeating the same mistakes.
Collaboration with a partner who understands both the capabilities of the tool and the realities of planning processes enables faster achievement of a mature operating model and helps avoid common mistakes.
When looking for a partner to transform planning processes, ask for specific examples of similar implementations and verify whether they understand both the technological and business aspects of the planning process.
CONTACT
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