o9 Digital Brain for Chemical

An Indian multinational paint company engaged in the business of manufacturing, selling and distribution of paints, coatings, and products related to home decor, and bath fittings.

Procurement had to manually change purchase requisitions in sync with daily change of demand and supply. This led to
errors in PO placement regarding quantity and timing which impacted revenue and inventory levels.

Sustainability Impact

Avoiding excess procurement and expedites with procurement driven by demand.

Business Scope Challenges

Manual Processes

This company depended on many manual interventions to correct purchase requisitions on a daily basis.

Opportunity

With o9, a Purchasing Work Bench was created to automate the entire process of monitoring coverage levels, generating and approving PRs. These were fully integrated with ERP (SAPS/4HANA) to generate POs.

Demand/Supply Matching

Tanker scheduling had to be synchronized
to the inventory levels at plants. These schedules had to be synchronized to align
raw material with demand.

Opportunity

With o9, the company was able to leverage
the heuristic solver to provide an efficient
way to create a schedule based on matching demand, supply and inventory levels.

Supplier Collaboration

There were instances where POs would unexpectedly be cancelled or sought to be amended by suppliers. This lead to potential revenue loss or delay.

Opportunity

With o9, the workflow was enhanced to allow collaboration with suppliers as part of the PO approval workflow. This led to improved planning and early visibility into supplier constraints.

Value Delivery

Key Functionalities Implemented

The o9 Enterprise Knowledge Graph was used to get visibility, utilize o9-enabled workflows for procurement to approve PRs through appropriate hierarchy, and send them to SAP as POs. Moreover, a supplier check was enabled where suppliers could confirm their available capability.

Systems Replaced

Homegrown solutions and Excel.

Customer Benefits

Success Factors — 3 reasons why o9 was selected 

  1. The flexibility of the platform to build workflows and connect to different data elements.
  2. The ability to use o9’s open architecture to customize the solution to fit the organization’s needs.
  3. Progressive mindset — collaboration and o9’s support on enhancements.

KPI Impacted

  1. Improvement in raw material inventory levels.
  2. Reduction of revenue loss or delay for accounts due to shortages.
  3. Increase in planner productivity.

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