How Connecting CRM, CPQ, SIOP and SAP Helped Schenck Double Output, Reduce Inventory by 50%, and Grow More Than 20%

For custom manufacturers, forecasting revenue is only half the battle. The real challenge is determining whether the organization has the capacity, inventory, suppliers, engineering resources, and operational capabilities required to fulfill that forecast profitably and on time. Many companies generate forecasts. Far fewer can confidently execute them. This was the challenge facing Schenck.

As the business continued to grow, leadership wanted greater confidence in future revenue projections and a structured process for translating customer demand into executable operational plans. Information existed throughout the organization—in CRM systems, CPQ processes, engineering activities, planning spreadsheets, and SA, but these inputs were not fully connected. 

The company needed a way to transform customer demand into predictable revenue forecasts that could actually be fulfilled. To accomplish this objective, Schenck partnered with LMA Consulting Group to create a tailored Sales, Inventory & Operations Planning (SIOP) process that connected customer demand, capacity planning, inventory strategies, supplier requirements, and operational execution into a single business rhythm. The results included doubling output in a critical manufacturing area, reducing inventory by 50%, achieving more than 20% business growth, and sustaining customer service performance throughout the pandemic.

The Challenge: Connecting Customer Demand to Execution

Like many custom manufacturers, Schenck operates in an environment where customer requirements, product configurations, lead times, engineering resources, and production capacity must be carefully coordinated. Customer demand often begins months before production in CRM systems and CPQ processes. Quotes are generated, opportunities develop, projects move through engineering, and customer requirements evolve. The challenge was not a lack of information. The challenge was ensuring that information flowed through the organization in a way that allowed leadership to confidently forecast revenue and ensure the business could fulfill what had been sold.

Without that visibility, organizations often experience:

  • Capacity constraints that are identified too late
  • Supplier shortages
  • Inventory imbalances
  • Engineering bottlenecks
  • Reactive scheduling
  • Missed revenue opportunities
  • Difficulty forecasting revenue and margins accurately

Leadership wanted a process that would connect customer demand to operational execution and create predictability across the business.

Creating a Single Version of the Truth

One of the first priorities was evaluating how information moved through the organization. Demand signals existed in multiple places. Customer opportunities lived within CRM systems. Product configurations and requirements flowed through CPQ processes. Engineering managed technical requirements. Operations managed production. Supply chain teams managed inventory and suppliers. SAP supported execution. However, these activities were not always connected in a way that provided a clear view of future demand and operational requirements.

LMA worked with Schenck to:

  • Evaluate CRM and CPQ processes
  • Assess forecasting and demand inputs
  • Review planning workflows
  • Identify process and data gaps
  • Improve visibility across functions
  • Strengthen ERP utilization
  • Establish planning disciplines

The objective was to create a common understanding of demand and align the organization around a single version of the truth.

Translating Revenue Forecasts into Capacity Plans

A revenue forecast only creates value if the organization can fulfill it. This became one of the most important aspects of the engagement. 

Through the SIOP process, customer demand was translated into:

  • Capacity plans
  • Production requirements
  • Material requirements
  • Inventory strategies
  • Supplier plans
  • Engineering resource plans

Rather than discovering constraints after orders were received, leadership could proactively evaluate whether capacity, labor, materials, and suppliers could support future demand. This improved decision-making and increased confidence in both revenue projections and operational execution.

Building a Business Rhythm

One of the most important outcomes of the engagement was the creation of a consistent business rhythm. SIOP became much more than a planning exercise. It became the process that connected sales, engineering, supply chain, procurement, operations, and leadership.

Regular reviews of demand, capacity, inventory, supplier requirements, and operational performance enabled teams to make better decisions and stay aligned around common objectives. This business rhythm created the predictability that leadership was seeking. Rather than reacting to demand changes, the organization gained the ability to anticipate future requirements and prepare accordingly.

Leveraging SAP as the Fulfillment Engine

While CRM and CPQ provided visibility into future demand, the systems had to be connected to SAP. This integration became the engine that enabled execution. The organization strengthened the connection between planning activities and operational execution, ensuring that decisions made through the SIOP process translated into actionable plans within SAP.

This improved:

  • Production planning
  • Material planning
  • Inventory management
  • Capacity utilization
  • Supplier coordination
  • Operational visibility

The result was a more connected process that linked customer demand directly to execution.

Improving Operational Performance

With improved visibility and planning discipline, Schenck was able to make better decisions throughout the organization. 

  • Engineering teams gained earlier insight into future workload requirements.
  • Procurement teams improved supplier planning and material availability.
  • Operations teams improved production scheduling and resource utilization.
  • Leadership gained greater confidence in future revenue, margins, and delivery performance.

Most importantly, the company established a predictable operational rhythm that enabled the business to support growth more effectively.

The Results

By connecting customer demand, planning processes, and operational execution, Schenck achieved significant business improvements.

Key results included:

  • Improved visibility into future customer demand
  • Stronger alignment between sales, engineering, supply chain, and operations
  • Doubled output in a critical manufacturing area
  • Reduced inventory by 50%
  • Achieved more than 20% business growth
  • Sustained customer service performance throughout the pandemic
  • Improved supplier planning and coordination
  • Increased operational predictability
  • Enhanced capacity planning and resource utilization

Most importantly, the organization created a repeatable process for translating customer demand into revenue forecasts that could be fulfilled with confidence.

Creating Predictable Growth

For custom manufacturers, growth depends on more than winning business. It depends on the ability to align customer demand, engineering resources, supply chain capabilities, production capacity, and operational execution. Organizations that successfully connect CRM, CPQ, SIOP, and ERP systems create a powerful competitive advantage because they can confidently forecast, plan, and deliver.

By partnering with LMA Consulting Group, Schenck created a business rhythm that improved visibility, increased operational performance, and enabled predictable growth. The result was a more scalable organization capable of supporting customer needs, driving profitable growth, and delivering on its commitments.

 

Did you like this article?  Continue reading on this topic:
Achieving Results with LMA Consulting: Avtron Power Solutions’ Journey

Published: November 2, 2021 | Updated: May 21, 2026