High-Tech Products, High-Tech Forecasting

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Telecommunications

Applicable Functions

Discrete Manufacturing
Procurement

Use Cases

Demand Planning & Forecasting

Services

Cloud Planning, Design & Implementation Services
System Integration

The Challenge

Fujitsu Network Communications, a provider of diverse range of products to the telecommunications and cable industries, was facing challenges in accurately forecasting demand and responding efficiently to changing customer needs. The company was using spreadsheets for all its forecasting and planning, which was a time-consuming and labor-intensive process involving around 25 people and taking about six weeks to produce a 12-month rolling forecast. This process was not providing their suppliers with the visibility they needed. Fujitsu wanted to reduce the number of people involved in the process, produce an 18-month rolling forecast every month, and improve forecast accuracy.

About The Customer

Fujitsu Network Communications provides a diverse range of products to the telecommunications and cable industries. Its major customers include household names such as AT&T, Verizon, Time Warner and Comcast. Fujitsu’s market-leading optical and wireless networking solutions help consumers around the world stay connected and informed. Because the technologies in this industry are mature — and competitors are plentiful — Fujitsu faces special challenges in matching supply profitably with market demand.

The Solution

Fujitsu decided to implement JDA Demand, from JDA Software’s Manufacturing Planning suite, to help transform its supply chain. The company chose JDA because it was able to address specific challenges they had in forecasting highly configurable products. JDA's concept of 'attach rate' allowed Fujitsu to tie the parts to the product, creating dependent demand so that a revenue forecast by product would yield the correct number of parts. In implementing JDA Demand, Fujitsu relied on JDA Strategic Services and JDA Consulting Services to ensure a smooth transition. The result was a complete transformation of the forecasting process at Fujitsu, with a number of top-line and bottom-line benefits.

Operational Impact