Suntu motors: Planning for excellence (B)
Case Study

Suntu motors: Planning for excellence (B)

4 pages
April 2018
Reference: IMD-7-1907

This two-part case series makes a deep-dive into the Sales and Operational Planning (S&OP) process of Chinese carmaker Suntu Motors. They could not have wished for a better market response when it launched its first car in the fast-growing midsize SUV market. It predicted selling 240,000 cars in the first year; but, three months after opening its order books, it had to raise its forecast by almost 40% to 330,000 cars. It was now up to the already overstretched supply chain, production and purchasing teams to increase supply at short notice. This was not an easy task considering that Suntu was dependent on the cooperation of 150 external suppliers, while its main production facility in Chongqing was already running at 95% of total capacity. In CASE B Suntu had increased production capacity for this new SUV, but this came at a cost. Short-term and costly supply solutions had to be implemented to overcome shortages at sub-suppliers; lead-times for lower-priority models increased; planned launches in low-priority markets and launches of new models had to be postponed. With its ambition to increase profitability and become a larger global player in the premium car market, Suntu now needed to turn its attention to its internal processes, and in particular the S&OP process as a platform for keeping the entire organization aligned on the key priorities.

Learning Objective
  1. The components required to implement a mature planning process
  2. The importance of using a step-by-step improvement approach when it involves a company’s mind-set change
Keywords
Operation, Supply Chain, Sales, Planning, Demand Forecast, Integrated Circuit, Scenario Planning, Supply, Production Planning
Settings
China
Automobiles
2014 - 2017
Type
Field Research (Disguised)
Copyright
© IMD 2018
Language
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre, UK Office

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Fax +44 (0)1234 751125
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

The Case Centre, US office

Babson College

Babson Park, Wellesley MA 02457, USA
Tel +1 781 239 5884
Fax +1 781 239 5885
Email [email protected]hecasecentre.org

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Looking for something specific?
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics