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Machinery

From Five Fragmented Regions to a Single Global Network: How a Construction Giant Saved $12M in Inventory

Long lead times and manual, resource-intensive planning once kept the world's largest construction manufacturer in a reactive state. Discover how they replaced legacy SAP and Excel systems with an AI-powered replenishment engine to synchronize global supply and demand, resulting in $12M in savings and the power to scale without adding headcount.

This manufacturer recognized the significant benefit of streamlining its end-to-end planning process on one platform from demand signal management, global supply planning, and inventory planning. They wanted to match demand and supply across the globe, support scheduled order demand and improve planner productivity with extensive use of exception workbenches.

Sustainability impact

Forecast accuracy improvement reduces exped logistics as well as excess inventory.

challenges

Complexity to Clarity

Challenge

The company struggled to plan across an interconnected global network to handle the global distribution requirements from company owned manufacturing plants, subsidiaries, and third-party manufacturers

Solution

With o9, the company conducts (BOD-based) network planning, accounting for global, dependent, and independent requirements. The time-phased roll-ups allow for rapid inventory moves and align customer and supplier calendars.

Value Delivery

Systems Replaced

  • Excel
  • SAP
  • Homegrown solutions

Key Functionalities Implemented

The Global Replenishment Plan was implemented to have the right quantity of the right part at the right time and location. The output of the demand signal management is netted against the in-transit material and rounded up to the lot size, which is then used to drive the optimal replenishment plan.

Customer Benefits

success factors

  • “Due to resilience through design, go-live planning, go-live, and post-production support. It is because of that engagement and drive that the company has a solution that will enable planning and executing as a single global network versus that of 5 regional networks.”
  • Ability to connect and integrate with a diverse ERP landscape (SAP, Glovia, Legacy).
  • Flexibility to migrate to the company’s infrastructure after starting on o9’s public cloud offering.

KPI Impacted

  • Inventory savings of $12M.
  • Operational efficiencies in managing multi-currency.
  • Ability to grow the business without adding headcount.
Capital goods industry

Resource: Go digital: supply chain transformation in the Capital Goods industry

Download this o9-Genpact white paper to understand how digital supply chain transformation is offering modern solutions to typical challenges within the Capital Goods industry.

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