HUTCHINSON

The Challenge:

A COMPLEX GLOBAL NETWORK FACED WITH VOLATILITY, CAPACITY-UNCERTAINTY AND MISALIGNED DEMAND SIGNALS

Hutchinson's decentralized operating model, which had once enabled localized efficiency, was showing its limitations as global volatility intensified. Plants operated independently, with each managing their own forecasting, planning and procurement, using a patchwork of Excel tools and legacy ERP systems. As a result, global visibility and strategic alignment suffered.

“Our plants were each managing their own version of the truth,” said Luca Cicchiello, VP of Corporate Supply Chain at Hutchinson. “We had strong execution at the local level, but no consolidated view of global demand or capacity.”

The disconnect was particularly problematic in Hutchinson’s critical automotive and aerospace segments: two sectors recently rocked by unpredictable order volumes, supply delays and urgent, last-minute changes. This “work by emergency” mode led to excess inventory, missed delivery dates and over-reliance on premium freight, undermining both customer satisfaction and cost control.

Key challenges included:

• Inconsistent demand planning: Forecasts varied widely between plants and markets, often relying on manual inputs that couldn’t keep pace with rapidly shifting conditions.

• Lack of real-time capacity visibility: Labor, machine and material constraints were often identified too late to avoid production delays or unplanned costs.

• Reactive supplier engagement: Without a long-term view, suppliers struggled to align with Hutchinson’s actual needs, particularly for critical components in constrained markets.

• Inadequate tools: While procedures existed, the scale and complexity of the planning data overwhelmed Excel and older ERP systems.

The impact was visible across their supply chain. Inventory piled up in some areas while shortages crippled others. Operations teams worked overtime to respond to disruptions while purchasing departments lacked the data needed for effective supplier negotiations or long-term capacity booking.

It was clear Hutchinson needed more than incremental fixes; it needed a digital foundation for proactive planning and true cross-functional collaboration.

The Solution:

A GLOBALLY INTEGRATED S&OP PROCESS POWERED BY QAD DSCP TO BRING STRATEGIC ALIGNMENT AND OPERATIONAL CLARITY

In 2014, Hutchinson selected QAD DSCP to support its long-term planning transformation. As part of this global initiative, Hutchinson’s technology partnership with QAD and its use of DSCP has evolved to include expanded capabilities such as cloud deployment and alignment with the latest solution version.

“We were looking for a solution that could support our extended supply chain, linking demand with capacity, supply with inventory and our internal teams with suppliers,” said Cicchiello. “QAD DSCP delivered that vision.”

Creating a Unified Framework for S&OP and Execution

Hutchinson’s redesigned process architecture spans five key functions: Demand Planning, Sales & Operations Planning, Master Production Scheduling, Supply Planning and Plan Execution based on Demand Driven Operating Model (DDOM) principles. The process operates across two integrated time horizons:

• 18-Month Strategic Horizon: Incorporates long-term forecasts, new project launches and strategic events. This supports budgeting, capacity investment and supplier alignment by providing an extended, actionable planning view.

• 15-Week Master Production Schedule (MPS): Converts demand forecasts into executable plans that reflect real-world constraints across labor, equipment and materials.

This model allows Hutchinson to respond with agility in the short term while steering with confidence over the long term.

A Single Solution for Commercial, Production and Procurement Teams

QAD DSCP’s forecasting engine integrates diverse demand signals, including OEM forecasts, historical sales, promotions and market insights, into centralized models using segmentation rules and statistical algorithms. This “single version of the future” enables cross-functional alignment across commercial, production, supply chain and purchasing teams.

“We’ve created a two-way dialogue between commercial and operational teams,” noted Cicchiello. “For the first time, sales, production and supply chain are working from the same version of the future.”

Notably, forecast disaggregation capabilities allow high-level family forecasts to be broken down to the SKU level using historical allocation rules, improving plant-level accuracy and planning relevance.

Simulating and Solving Constraints in Real Time

One of the solution’s most transformative capabilities is its constraint simulation engine. Planners can model available resources, from machine time to labor shifts to critical materials, and see potential bottlenecks well before they impact production.

Even where ERP data is incomplete, QAD DSCP allows planners to simulate resource capacity using recent throughput averages. This enables agile decision-making at both the plant and corporate levels.

Planners can test multiple scenarios: shifting workloads between sites, adding overtime, changing delivery schedules or rebalancing inventory. Instead of firefighting, Hutchinson now plans proactively, reducing disruptions and improving production line performance.

Supplier Collaboration at Scale

The long-term vision extends beyond Hutchinson’s walls. With QAD DSCP, the company can explode S&OP and MPS data into long-range component requirements up to 18 months out and share this information with suppliers via EDI or PDFs.

This visibility allows suppliers to book capacity and source materials in advance, mitigating shortages and enabling better service. Internally, purchasing teams can aggregate global requirements to negotiate better pricing and prioritize supplier investments.

Role-Specific Dashboards for Faster Decisions

Built-in Analytics capabilities allow for personalized dashboards by role, from sales to plant management to procurement. Each team sees KPIs relevant to their goals, such as:

• Forecast accuracy and bias

• Past-due sales

• Inventory segmentation

• Resource utilization

• Supplier delivery performance

“The dashboards make it easy to move from insight to action,” said Cicchiello. “We don’t waste time guessing where to focus; we go straight to the exceptions that need attention.”

The Benefits:

QAD DSCP ENABLES END-TO-END VISIBILITY, FASTER DECISIONS AND STRONGER SUPPLIER PARTNERSHIPS

With QAD DSCP, Hutchinson has made a decisive shift from reactive planning to proactive orchestration across its global supply chain. The most visible benefit is a fully aligned S&OP process connecting commercial, operational and procurement teams through a shared planning solution.

Improved Forecast Accuracy and Agility: Forecasts are now collaboratively built, leveraging statistical models and market inputs. Planners can rapidly simulate new scenarios, anticipate shifts and make informed adjustments, eliminating the guesswork and latency of Excel-based workflows.

Smarter Capacity Planning: Using real-time data and modeling tools, Hutchinson can now foresee and mitigate capacity constraints. Whether optimizing shift schedules or modeling the impact of labor shortages, planners can test options and align stakeholders faster than ever.

Inventory Optimization Across the Network: QAD DSCP enables inventory segmentation based on demand volatility, lifecycle stage and risk. This ensures high-priority products are available where needed without tying up excess capital in safety stock.

Stronger Supplier Partnerships: With extended forecasts and visibility into raw material requirements, suppliers can plan ahead and reduce lead time volatility. Internally, procurement teams can act strategically, using global data to secure capacity and negotiate from a position of strength.

Reduced Costs and Operational Waste: The shift to a standardized, cloud-based planning solution has lowered total cost of ownership, improved user training and onboarding, and reduced reliance on local workarounds. In markets like Grand Rapids, Michigan, this has helped mitigate the risk of knowledge loss due to staff turnover.

Solution for Continuous Innovation: Hutchinson is building on its QAD DSCP foundation with future initiatives such as digital control towers, transportation integration and sustainability reporting to support carbon neutrality goals. QAD DSCP’s scalability and modularity ensure that innovation can continue without disrupting core processes.

“This is not just about solving today’s planning problems,” said Cicchiello. “QAD DSCP is our foundation for how we’ll manage growth, complexity and sustainability going forward.”