:o9 Digital Brain for Apparel & Footware

A multinational athletic apparel and footwear brand headquartered in the US. Product lines include shoes for Running, Basketball, Baseball, Skateboarding, Everyday, and Apparel.

This customer’s global presence, quickly changing marketplace, long lead times, and fragmented manual tools, hamper forecast accuracy and fill rates. Digital transformation of Demand and Supply Planning was desired to increase forecast accuracy and ensure the right product is in the right place at the right time, with increased efficiency.

Sustainability Impact

Reduction of inventory, excess wastes, and optimized capacity utilization.

Business Scope Challenges

Manual Demand Forecast

Demand forecasting was a time-intensive, manual process that was unable to keep up with market trends or shape demand effectively.

Opportunity

With o9, they were able to utilize ML analytics, include and analyze demand drivers, and perform attribute-based planning. These improved forecast accuracy for pre- and in-season products
in markets across the globe.

Agile Planning

There was a lack of effective and efficient planning of aggregated raw material purchases. This resulted in lead times that were longer than necessary and less agility to react to changing demand.

Opportunity

With o9, the customer leveraged material purchasing planning, scenario modeling, and pre-build calculations to effectively collaborate with suppliers and become more agile.

Demand/Supply Matching

Supply/Demand matching was complex, time-consuming, and didn’t maximize the ability to respond to market volatility or quickly rebalance inventory based on demand location.

Opportunity

With o9’s Supply Chain Solver engine, the customer created a digital twin of the network and quickly enabled agile responses to demand with inventory and capacity deployed to the right place at the right time.

Value Delivery

Key Functionalities Implemented

The o9 Enterprise Knowledge Graph is leveraged to build market, demand, and supply-knowledge models, allowing to run all key planning processes for all products and DCs, across all time horizons in a single integrated platform. The digital twin of the supply chain will allows for having complete visibility to inventory, optimize supply, and respond with agility to changing market demands.

Systems Replaced

Homegrown solutions and Excel

Customer Benefits

Success Factors — 3 reasons why o9 was selected 

  1. Advanced demand planning capabilities, such as AI/ML and attribute-driven fore- casting, as well as having a future-proofed extensible platform.
  2. o9’s inherent ability to connect Demand and Supply across locations, products, lead times, and suppliers into a single supply chain knowledge graph.
  3. Depth of retail, apparel and footwear industry knowledge and o9’s ability to address the specific constraints and value opportunities in the industry.

KPI Impacted

  1. Increase in forecast accuracy.
  2. Increase in demand fill rates.
  3. Increase in turns due to inventory optimization.

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