o9 Digital Brain for Consumer Durables

An manufactures, markets, imports, exports, distributes, and sells upholstered furniture products and accessories. The company serves international markets, with most of its $1.7bn in sales coming from North America.

This company was looking to implement new processes and software to ensure complete integration between S&OP activities, including forecasting, capacity planning, inventory and replenishment planning, and procurement functions. o9’s focus is on helping the company improve forecast accuracy, reduce working capital with optimally managed inventory, and enable data-driven agile decision-making.

Sustainability Impact

A reduction of inventory, excess waste, and shipping costs.

Business Scope Challenges

Planning in Multiple Systems

The company was using multiple tools (mainly Excel) to create their forecast. This led to inaccurate demand forecasts and a lack of demand visibility and collaboration.

Opportunity

With o9, all demand forecasts are executed in a unique system that provides collaborative options to allow them to establish accurate demand forecasts.

Planning Granularity

For the company, style level forecasting is critical, but the complex processes and the lack of data visibility–a result of the use of legacy systems–were not allowing them to forecast accurately at the style level, limiting them to top- down forecasting.

Opportunity

With o9, they can predict product demand in the market and use bottom- up forecasting.

Capacity Visibility

It was a challenge to include the DCs’ capacity to ensure optimized inventory levels for Build-to-Stock.

Opportunity

With o9, the DC Capacity is modeled into the platform, allowing the company’s teams to include the capacity as a constraint in the demand forecast and replenishment calculations.

Value Delivery

Key Functionalities Implemented

Demand Planning, Supply Planning, S&OP, Supplier Collaboration, Available- to-Promise, and Financial Planning (AOP) process area would help replace many manual and disparate spreadsheets.

Systems Replaced

Excel & Demand Solutions (Logility product), ERP was JDA.

Customer Benefits

Success Factors — 3 reasons why o9 was selected 

  1. Industry knowledge.
  2. Vision.
  3. Cloud-vative AI/ML-powered platform with open architecture.

KPI Impacted

  1. Improved inventory turns.
  2. Customer satisfaction (reduced backlog).
  3. Supplier collaboration.

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