Textile Giant Improves Profitability With Integrated xP&A Planning in SAP Analytics Cloud

Overview

Mohawk Industries is a $10B leading manufacturer of commercial and residential flooring and countertops. They design, produce and distribute across operations in 18 countries and sell into more than 170 markets worldwide through six different sales channels. Decades of growth – including more than 40 acquisitions within 20 years – left the company without a harmonized planning foundation and lacking visibility across all business units. The Finance team struggled to make accurate, fact-based decisions in their forecasts.

To reconcile siloed information and enable broad collaboration across this complex organization, Mohawk partnered with Macrospect to implement SAP Analytics Cloud (SAC) Planning. The new planning foundation unified financial and operational drivers across business units, improving profitability insights and enabling leadership to make more informed strategic decisions.

Business Challenge

Years of growth through acquisition created significant complexity in Mohawk’s planning environment. Different business units used inconsistent data structures, KPIs, and product costing methods, making it difficult for finance to view performance consistently across the organization and requiring significant manual effort.

Finance teams struggled to gain a detailed and reliable view of profitability across products, business units, and channels. This limited leadership’s ability to confidently answer key strategic questions about cost drivers, margins, and investment priorities.

Mohawk needed a modern planning and analytics foundation that would bring consistency to its planning processes while enabling collaboration across finance, operations, HR, and sales.

Solution

Macrospect implemented SAP Analytics Cloud Planning to establish a unified planning and analytics foundation across Mohawk’s operations.

Using Macrospect’s MAP methodology, the team worked closely with Mohawk stakeholders to identify inconsistencies across business units and align planning processes, drivers, and metrics.

The new solution enables Mohawk to:

• Align product costing methods across business units
• Standardize KPIs and planning metrics across the organization
• Improve visibility into labor and operational cost variances
• Incorporate external data sources into planning models
• Use predictive analytics and driver‑based forecasting to improve accuracy
• Enable collaboration across finance, plant operations, HR, and sales teams

This integrated planning environment provides a consistent and reliable view of business performance across Mohawk’s diverse operations.

Business Outcomes

With a modern planning and analytics foundation in place, Mohawk gained significantly stronger visibility into the drivers of profitability across its business units.

Driver‑based forecasting and aligned planning processes allow finance to answer complex operational and financial questions with greater confidence—something that had previously been difficult due to fragmented data and inconsistent processes.

• Improved product costing accuracy across business units, channels, and products
• Greater insight into labor and operational cost variances
• More informed manufacturing and product mix decisions
• Improved capital allocation toward higher‑performing products and channels
• Better cross‑functional planning collaboration across the organization

The new planning foundation also shifted Mohawk’s planning process from heavy manual preparation to deeper analysis, enabling finance teams to focus more time on strategic decision‑making.