Closing the gap at Carter Holt Harvey - Pulp and Paper

Oxygen’s implementation of SAP’s Strategic Enterprise Management has revolutionised forecasting at Carter Holt Harvey by closing the gap between forecast and actual results.

“It’s common for businesses to make a forecast, then later compare that forecast with what has actually been achieved - the problem is by then it’s too late to do anything about it.”

“We’re using SEM to create a forward view of our progress towards achieving forecast. We can see exactly what we need to do or change in order to stay on track.”

Raymond McNickle, CHH Pulp and Paper Business Improvement Manager.

Challenge

Eliminate gap between ‘forecast’ and ‘actual’ results
‘Rear view mirror’ powerless to change what is already done
Forecasting done at high level by a small group
Averaging disallows exact match between forecast and actual results
Spreadsheet-based planning necessitates oversimplifications
Need to strengthen links between production & sales

Solution

Deploy SAP SEM as a powerful forecasting tool
Interfaces to non-SAP manufacturing and mill optimisation systems
Simulate impacts of non-controllable variables on forecasts
Identify controllable variables causing deviation between ‘forecast’ and ‘actual’ in time to take corrective action
Broaden forecasting participation and increase visibility
Logarithms allow business to select any level of planning detail
Identical report format for both ‘forecast’ and ‘actual’

Return on Investment

Business knows what actions to take in order to meet forecasts
18-month rolling forecasts replace 3-month forecasts
‘Rear view mirror’ replaced by forward view of the business
Clear view of how every decision will affect forecasts
Knowledge of how uncontrollable variables will affect forecasts
Clear view of inventory levels, and the effects of adjusting them
Sales drive production

Downloads

Download the full Case Study here: SEM at CHH

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Customer Profile

Carter Holt Harvey

Carter Holt Harvey is one of the largest diversified forestry and wood products companies in the region, comprising 65 subsidiary operating companies, employing more than 11 000 staff at 100 locations.

Business Profile: Carter Holt Harvey is one of the largest diversified forestry and wood products companies in the region, comprising 65 subsidiary operating companies and employing more than 11 000 staff at 100 locations. In addition to its extensive forestry interests, Carter Holt Harvey is a leading supplier of wood and building products.

Pulp & Paper: A division of Carter Holt Harvey, Pulp & Paper is Australia’s only producer of kraft market pulp, and a leading producer of kraft liner board and fibre cement pulp. Pulp & Paper has assets of over one billion dollars, employs over 1 000 people and has annual revenues of $735 million.

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