A well-known British automotive use ChAI to develop robust annual forecasts and budgets.
Due to the nature of its business, the company has significant exposure to volatile, costly commodities such as palladium, rhodium, platinum, aluminium and copper. A key annual event for them is the budgeting and forecasting of commodities prices that then serves as a key pillar in their annual business plans. However, it can be difficult to create an accurate plan that is not too conservative or pessimistic.
The Finance Director and his team use the ChAI application for developing robust annual forecasts and budgets in relation to commodity usage and costs. This analysis is updated throughout the year as key events impact relevant markets. The purchasing team have a shared view and use ChAI’s PGM predictions to secure more favourable deals with suppliers.
ChAI’s price predictions have been used to develop the 2021 commodities management plan and purchasing strategies. This project is ongoing, however, the team have reported that ChAI has enabled them to complete their analysis in 1/3rd of the time it usually takes. ChAI’s probability distributions and downloadable reports have been used as supporting material in meetings with the CEO, CFO and CPO as well as with external shareholders.