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.
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.
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
- The flexibility of the o9 platform to cope with the industry-specific requirements.
- The integration capabilities in both SAP and Infor LN ERP, as well as SFDC CRM.
- Implementation timeline.
KPI Impacted
- Increased forecast accuracy.
- Reduced component shortage due to better forecasting (capacity to forecast component requirements to meet client timeline).
- Planning effort efficiencies.
White paper
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.
