Project Info

Struggling to synchronize procurement with sales demand, the client lacked purchase-to-pay visibility. Our IBM Cognos suite bridged this gap, optimizing inventory & vendor management, and shipping accuracy.
  • Industry : Sales
  • Category : BI & Data Analytics
  • Date : Jul'24
  • Location : Los Angeles, CA, USA

Project Info

Problem Statement

Our client faced significant operational hurdles in synchronizing their procurement cycles with real time sales demand. The primary challenge was a lack of transparency in the purchase to pay process, where purchasing managers struggled to track the delta between “Original Ordered Quantity” and “Quantity Received” across multiple warehouses. There was no centralized view to monitor “In Transit Quantity” or to identify why certain purchase order lines were being “Cancelled by WMS”. Additionally, the sales and finance teams lacked a streamlined method to calculate quarterly commissions or to align warehouse shipment data with specific customer orders, leading to delays in reporting and potential inaccuracies in demand forecasting.

The Solution: Integrated Purchase and Sales Intelligence via IBM Cognos

We developed and deployed a centralized reporting suite within IBM Cognos to provide a comprehensive end to end view of the order lifecycle. The solution focuses on high precision data retrieval and user driven customization through a robust parameter interface.

Procurement & Vendor Performance Tracking

To optimize the supply side, we implemented the P/O Line Query and P/O Receiver Lines Report. These reports provide granular detail on every transaction, including line status (e.g., Finished or Closed), unit costs, and buyer identification. By tracking the “Last Receipt” date against the “Requested” date, purchasing managers can now evaluate vendor reliability and manage warehouse specific inventory levels more effectively.

Demand Driven Inventory Replenishment

The Purchasing Demand Item Sales Data report was introduced to bridge the gap between sales forecasts and procurement. This tool categorizes demand into “GENERAL” and “FORECAST” groups, allowing the client to view “Original Demand Qty” alongside “Revised Qty” and specific demand dates. This ensures that replenishment vendors receive accurate signals based on actual warehouse needs and historical sales trends.

WMS Integration & Shipment Visibility

For the fulfillment side, we integrated the WMS Shipment Inventory Report, which provides a detailed breakdown of shipments at the container and order level. This report tracks the specific “Qty Picked” for each item and its associated Unit of Measure (UOM), such as RL (Rolls) or CS (Cases). This level of detail allows the logistics team to verify shipment integrity before orders leave the facility.

Dynamic User Parameters & Automated Delivery

A critical component of this solution is the filter parameters page for each view. This interface allows users to filter large datasets by Customer Number, Transaction Type, Item, Warehouse, Corp ID, and many more. To ensure that higher management and sales operations stay informed without manual intervention, we utilized Cognos’s scheduling capabilities to deliver these reports at varied frequencies, ranging from daily shipment updates for warehouse managers to quarterly commission summaries for the executive team.

Value Provided

Granular Operational Visibility

By monitoring “PO Line Qty on Rcvr” and “In Transit Quantity,” the client reduced inventory blind spots and improved the accuracy of their stock level projections.

Optimized Demand Planning

The ability to distinguish between forecasted and general demand allowed the purchasing team to prioritize high velocity items, reducing both stockouts and excess inventory

Enhanced Vendor Management

Identifying discrepancies in “Quantity Received” versus “Quantity Ordered” enabled the client to hold vendors accountable and negotiate better terms based on performance data.

Streamlined Executive Decision Making

Higher management now utilizes the scheduled summaries to monitor corporate health, while the parameter driven filters allow for “on the fly” analysis during strategic reviews.

Increased Shipping Accuracy

The detailed WMS Shipment reports ensured that the “Qty Picked” consistently matched customer orders, significantly reducing shipping errors and associated return costs.

Related Case Studies