This retailer was unable to bring commercial, supply and demand planning together with many siloed processes leading to lost sales and excess inventory. They lacked the E2E visibility and the ability to respond to changing market dynamics.
o9 Digital Brain for Consumer Electronics
A specialist marine electronics company providing navigation, marine instruments and fish finding equipment to both the recreational and commercial marine sectors.
Reduced inventory and reduced logistics expedites
Business Scope Challenges
The company was unable to create true E2E visibility across the supply chain, due to a wide variety of disconnected planning systems operating in a siloed environment.
With o9, the company is leveraging the highly differentiated Enterprise Knowledge Graph to integrate various planning functions and regions across the organization, reducing overall E2E planning cycles and increasing visibility and efficiency.
The company frequently experienced both inventory excess and shortages with only 10% of the SKUs having healthy inventory across the network.
With o9, the company improved its inventory management significantly by implementing statistical and supply- based safety stock calculations. Moreover, supply planning is now streamlined across its distribution network, including the creation of purchase orders and transfer orders.
The forecast accuracy for demand, especially in connection to new product introduction, was rather low.
With o9, the company’s demand forecasting capability increased significantly through implementation of rule-based demand forecasting depending on the product type. There was further improvements in the highly collaborative consensus forecast process across functions and regions.
Key Functionalities Implemented
Leveraging o9’s digital planning and decision-making platform, the company was able to improve forecast accuracy, inventory health and planner productivity through the implementation of a best- in-class integrated demand and supply planning solution. In addition, o9’s Control Tower implemented at the company provides tracking of key operational KPIs as well as providing tactical execution recommendations in the short term thereby improving customer OTIFs.
Excel, PowerPoint, Avercast.
Success Factors — 3 reasons why o9 was selected
- Ability to provide E2E visibility, perform demand-supply matching and have other planning capabilities in one platform.
- Ability to perform real-time scenario analysis and make informed decisions.
- o9’s time-to-value and ability to implement in a short time.
- Revenue increase (through improved forecast accuracy).
- Customer OTIF increase (through improved inventory and distribution).
- Productivity improvement (through process automation).