o9 Digital Brain for Capital Goods

A leading provider of cargo and load handling solutions. The company’s goal is to become the leader in sustainable and intelligent cargo handling.

This manufacturer is a global initiative aimed to implement digital transformation throughout their end-to-end supply chain and to drive efficiency by focusing on speed, automation, real time, and transparency.

Sustainability Impact

Reduction of inventory and optimization of logistics.

Business Scope Challenges

Forecasting Capabilities

Before implementing o9’s Digital Brain, the company did not have proper forecasting in place, the order book was the significant driver of decision-making.

Opportunity

With o9, they now have a holistic view of all relevant sources of the demand planning shared across all stakeholders and external dealers in a collaborative workflow.

Delivery Lead Time

The company is a configure-to-order business. From opportunity creation to delivery, the sales cycle varies between 3 to 6 months, with the order-to-delivery time between 2 to 4 months. The 4.0 initiative aims to reduce the order-to- delivery lead time in order to increase customer satisfaction.

Opportunity

With o9, they can derive the configured product group forecast and key component demand by analyzing potential scenarios (option forecasts) and using a bill of materials (attach rates) to plan component orders and inventories.

Planning Capabilities

The lack of planning tools led to issues with the Kalmar finance team, who could not comprehensively view the order lifecycle and the associated revenues.

Opportunity

With o9, a demand plan based on quantities is easily transformed into a revenue plan considering leasing contract durations of the orders.

Value Delivery

Key Functionalities Implemented

o9 provided truly end-to-end planning software, including Demand Planning, Supply Planning, S&OP, Control Tower, Inventory Planning, Production scheduling. o9 Digital Brain is integrated with the ERP system (SAP HANA), the CRM (Salesforce), as well as the TMS (Oracle). A pilot on scheduling for discrete manufacturing was deployed as well.

Systems Replaced

Excel.

Customer Benefits

Success Factors — 3 reasons why o9 was selected 

  1. The flexibility of the o9 platform to cope with the industry-specific requirements.
  2. The integration capabilities in both SAP and Infor LN ERP, as well as SFDC CRM.
  3. Implementation timeline.

KPI Impacted

  1. Increased forecast accuracy.
  2. Reduced component shortage due to better forecasting (capacity to forecast component requirements to meet client timeline).
  3. Planning effort efficiencies.

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