Scenario Planning at Louwman

Louwman uses new business models to respond fully to the rapidly changing trends within the automotive world. The implementation of an FP&A and S&OP platform supports this ambition with improved processes for integrated planning and reporting.

"The world around us is changing and we want to adapt the organization to that; we are moving from a decentralized structure to one Louwman. This necessitates faster and more efficient planning & analysis," says Erwin van Roon of Louwman Group about the reason for implementing the planning platform.

"The world around us is changing and we want to adapt the organization to that; we are moving from a decentralized structure to one Louwman.”

Louwman Group faced various challenges within their organisation. Their decentralized organisational structure led to inconsistent inventory levels which causing frequent stock-outs and overstock situations. These issues resulted in unnecessary delays, increased operational costs and reduced customer satisfaction.

The particular inefficiencies often led to missed sales opportunities, excessive working capital tied up in inventory and pressured supplier relationships. The lack of visibility and coordination across the supply chain created silos within the organisation, which prevented the company from executing an unified business strategy.

The critical role of Integrated Planning Systems

One of the crucial problems within Louwman was the fact that the majority of the entities used different ERP systems, a challenging mission to align and integrate all relevant processes and systems. The lack of an integrated planning system meant inaccurate forecasting, poor decision-making and the lack of ability to respond timely and effectively to market fluctuations. These inefficiencies highlighted the urge for a sophisticated S&OP solution to improve their operational efficiency and profitability.

The Louwman Group is a family business, founded in 1923, operates in the Netherlands, Sweden, Belgium, Denmark and the Czech Republic. The focus is on mobility with a wide range of activities: importer and dealer of Toyota, Lexus, Suzuki, Morgan and McLaren, as well as leasing and financing activities, parts, logistics and mobile healthcare aids.

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