Streamlining Global Supply Chain Operations for a Leading Machinery Manufacturer
Technology Category
- Functional Applications - Inventory Management Systems
- Infrastructure as a Service (IaaS) - Public Cloud
Applicable Industries
- Cement
- Transportation
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Demand Planning & Forecasting
- Inventory Management
About The Customer
The customer is a leading American corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network. It is the world’s largest construction equipment manufacturer. The company operates on a global scale, with an interconnected network of company-owned manufacturing plants, subsidiaries, and third-party manufacturers. The company was seeking a solution to streamline its end-to-end planning process on a single platform, including demand signal management, global supply planning, and inventory planning.
The Challenge
The case study revolves around a leading American corporation that designs, manufactures, and sells machinery, engines, financial products, and insurance globally. The company was grappling with the challenge of streamlining its end-to-end planning process on a single platform. This included demand signal management, global supply planning, and inventory planning. The company aimed to match demand and supply across the globe, support scheduled order demand, and improve planner productivity. However, planning across a global network was a significant challenge due to the interconnected nature of the company's operations, which included company-owned manufacturing plants, subsidiaries, and third-party manufacturers. Additionally, the company faced difficulties in matching supply and demand due to long lead times and a complex global supply chain. This made the process resource-intensive and required manual effort.
The Solution
The company partnered with o9 to overcome its challenges. With o9, the company was able to conduct network planning based on Business Object Document (BOD), accounting for global, dependent, and independent requirements. This allowed for rapid inventory moves and alignment of customer and supplier calendars. The solution also enabled the company to respond to customer demand with a supply plan updated with frequent refreshes of on-hand inventory, receipts, and ASNs. Exception management workbenches were used to target shorts, surplus, lot size, and ship day exceptions. Furthermore, the company was able to automate actions based on business rules, leveraging global visibility to identify exceptions via a Demand Cockpit used by demand and forecast analysts. The Global Replenishment Plan was implemented to ensure the right quantity of the right part was available at the right time and location. The company replaced its homegrown solutions, SAP, and Excel with o9's solution.
Operational Impact
Quantitative Benefit
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