Contextualization
Context
Interpump faced the challenge of synchronizing production and revenue growth with optimized inventory management, ensuring an efficient balance between supply and demand. To achieve this, it was essential to promote integration among all strategic areas and stakeholders, including Customer Relationship Management (CRM), Production Planning and Control (PPC), Supply Chain Management (SCM), Financial Management, Purchasing and Procurement, as well as collaboration with key suppliers.
The central objective was to enhance operational effectiveness and ensure agile and responsive service to market demands by applying methodologies such as Sales and Operations Planning (S&OP), Demand Forecasting, Just-in-Time (JIT), and Material Requirements Planning (MRP). In this way, the company sought to optimize working capital, reduce the bullwhip effect in the supply chain, and increase planning accuracy — ensuring greater predictability, lower inventory obsolescence, and maximized profitability.
The Problem
The lack of systemic integration among departments and the absence of a structured Demand Forecasting and Supply Planning process resulted in inventory misalignment, generating surpluses that tied up working capital or shortages that compromised service levels. This misalignment directly impacted operational efficiency, increasing logistics costs, delivery times, and disruptions in the production flow. In addition, low demand predictability accuracy affected the Order Fulfillment Rate (OFR), harming Customer Experience (CX) and compromising the organization’s long-term sustainable growth.
The Solution
After a detailed analysis of market options, Interpump chose OTIMIZA’s consulting services, which presented the ODM-S&OP product developed on OTMSuite technology. The implementation of Sales & Operations Planning (S&OP) was carried out strategically, segmenting the company into product families and subfamilies, providing a customized view of each operation.
The process included the collection of essential data (sales, production, and inventory), followed by demand planning based on historical data and customer feedback, and supply planning to optimize the use of resources such as production capacity, labor, and materials. After defining the plan, performance was continuously monitored and adjusted as needed to ensure that production and inventories remained aligned with market demands.
The successful implementation of S&OP, combined with the deployment of ODM-S&OP, enabled the standardization of the sales and operations planning process across all Interpump Brazil divisions (Power, Control, Winch, Gearbox, and Water), ensuring that the right products were produced at the right time and with the ideal inventory levels, avoiding both excesses and shortages.
The main goal of this process was to enhance operational effectiveness and ensure agile and responsive service to market demands. To achieve this, methodologies such as Sales and Operations Planning (S&OP), Demand Forecasting, Just-in-Time (JIT), Material Requirements Planning (MRP), and the implementation of ODM-S&OP were applied in an integrated manner. As a result, working capital was optimized, the bullwhip effect in the supply chain was reduced, planning accuracy increased, and, consequently, company profitability was maximized.
The Results
With the implementation of the ODM-S&OP model, the sales and operations planning process was standardized across all Interpump Brazil divisions (Power, Control, Winch, Gearbox, and Water), ensuring that the right products were produced at the right time, with ideal inventory levels, meeting customer demand without excesses or shortages.
In the first 12 months, the main results achieved were:
Inventory reduction of 14%, equivalent to R$5 million.
Revenue increase of 9%, equivalent to R$10 million.
Improvement in on-time delivery performance, rising from 92% to 95%.
These results reflect the effectiveness of cross-department integration and the optimization of planning and supply processes.
About Interpump
Interpump Hydraulics do Brasil is a company of the Interpump Group, present in Brazil since 2012 following the acquisition of Takarada. Headquartered in Caxias do Sul, the company provides innovative hydraulic solutions, especially for the road and agricultural equipment sectors. Over the years, it has expanded its operations in the country by acquiring other renowned brands and increasing its portfolio. Its commitment to quality, innovation, and sustainability is central, with ISO 9001 certification and a strong international presence.
ODM-S&OP (Sales & Operations Planning) is an application that runs on OTMSuite and aims to integrate demand management and operational planning within the company’s ERP.
ODM-S&OP Function within OTMSuite
This application aligns sales forecasts with operations, ensuring that the company can meet market demand efficiently while minimizing costs and optimizing resources.
Main Benefits
Predictability and Planning – Enables anticipation of future demand based on historical data and market trends.
Operational Efficiency – Synchronizes production, inventory, and logistics to avoid waste and ensure product availability.
Goal Achievement – Aligns operations with the company’s strategic objectives, ensuring that sales and production targets are met.
ERP Integration – Connects sales, production, and supply chain areas, centralizing information and automating processes.
How It Works
Data Collection – ODM-S&OP receives sales, inventory, and production data from the ERP.
Analysis and Forecasting – Uses algorithms and statistical analyses to predict demand.
Integrated Planning – Adjusts operations according to forecasts, ensuring balance between supply and demand.
Execution and Monitoring – Tracks results and adjusts planning as necessary.
This application is essential for companies seeking greater competitiveness by reducing operational costs and improving customer service through integrated and intelligent management.
