IBM Case Studies Milgard: Predicting sales with precision to drive swift, efficient production

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	Milgard: Predicting sales with precision to drive swift, efficient production IBM

Milgard: Predicting sales with precision to drive swift, efficient production

IBM

Technology Category	Analytics & Modeling - Predictive Analytics
Applicable Industries	Construction & Infrastructure
Applicable Functions	Business Operation Sales & Marketing
Use Cases	Predictive Replenishment
Services	Data Science Services
Challenge	Milgard Manufacturing, Inc., a leading producer of windows and patio doors, operates on a demand-driven manufacturing model to avoid overstocking issues. This approach requires the company to predict sales extremely accurately to ensure it has the resources needed to fill incoming customer orders quickly. Sales of windows are influenced by various factors, including housing market fluctuations and regional preferences. Therefore, Milgard needs to ensure that its annual budgets and forecasts accurately reflect the impact of these factors. The company's inflexible approach to planning threatened to hamper business agility, prompting it to seek a better solution. Read More
About Customer	Milgard Manufacturing, Inc. is a leading producer of windows and patio doors. The company is headquartered in Tacoma, Washington, and employs more than 2,000 people across 18 sites in the western United States. Milgard operates on a demand-driven manufacturing model, producing goods only once customers have ordered them. This approach requires careful planning to avoid the expense of producing, storing, and disposing of excess stock. The company's sales are influenced by various factors, including housing market fluctuations and regional preferences, necessitating accurate annual budgets and forecasts. Read More
Solution	Milgard engaged Applied Analytix, an IBM Premier Business Partner, for assistance during its business process transformation. The company deployed IBM Cognos TM1, a powerful enterprise planning solution, to support the new processes. Milgard starts the annual planning process by examining macroeconomic indicators likely to influence sales in each territory, such as the number of properties being built or the number of homes sold. Combining this information with historical sales data and the expert opinions of its sales managers, the company calculates the size of the market in each area and estimates its share. Managers use these figures to set growth objectives for each sales territory. Once the sales forecasts are complete, Milgard uses the results as the basis for its operational planning process, automatically generating productivity targets for each plant based on metrics such as labor productivity and material waste. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Applicable Industries

Construction & Infrastructure

Applicable Functions

Business Operation

Sales & Marketing

Use Cases

Predictive Replenishment

Services

Data Science Services

Challenge

Milgard Manufacturing, Inc., a leading producer of windows and patio doors, operates on a demand-driven manufacturing model to avoid overstocking issues. This approach requires the company to predict sales extremely accurately to ensure it has the resources needed to fill incoming customer orders quickly. Sales of windows are influenced by various factors, including housing market fluctuations and regional preferences. Therefore, Milgard needs to ensure that its annual budgets and forecasts accurately reflect the impact of these factors. The company's inflexible approach to planning threatened to hamper business agility, prompting it to seek a better solution.

About Customer

Milgard Manufacturing, Inc. is a leading producer of windows and patio doors. The company is headquartered in Tacoma, Washington, and employs more than 2,000 people across 18 sites in the western United States. Milgard operates on a demand-driven manufacturing model, producing goods only once customers have ordered them. This approach requires careful planning to avoid the expense of producing, storing, and disposing of excess stock. The company's sales are influenced by various factors, including housing market fluctuations and regional preferences, necessitating accurate annual budgets and forecasts.

Solution

Milgard engaged Applied Analytix, an IBM Premier Business Partner, for assistance during its business process transformation. The company deployed IBM Cognos TM1, a powerful enterprise planning solution, to support the new processes. Milgard starts the annual planning process by examining macroeconomic indicators likely to influence sales in each territory, such as the number of properties being built or the number of homes sold. Combining this information with historical sales data and the expert opinions of its sales managers, the company calculates the size of the market in each area and estimates its share. Managers use these figures to set growth objectives for each sales territory. Once the sales forecasts are complete, Milgard uses the results as the basis for its operational planning process, automatically generating productivity targets for each plant based on metrics such as labor productivity and material waste.

Impact #1	Greater visibility of plans is giving staff at Milgard deeper insight into the business.
Impact #2	The IBM solution has enabled Milgard to achieve significant time savings.
Impact #3	New budget iterations can be completed in days, rather than weeks.

Impact #1

Greater visibility of plans is giving staff at Milgard deeper insight into the business.

Impact #2

The IBM solution has enabled Milgard to achieve significant time savings.

Impact #3

New budget iterations can be completed in days, rather than weeks.

Benefit #1	Speeds up budget iterations from weeks to days
Benefit #2	Reduces manual work

Benefit #1

Speeds up budget iterations from weeks to days

Benefit #2

Reduces manual work

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Overview

Milgard: Predicting sales with precision to drive swift, efficient production

Operational Impact

Quantitative Benefit