o9 Digital Brain for Metals

One of the world’s most geographically diversified steel producers, with operations in over 20 countries. This company is one of the largest steel wire manufacturers in the world.

Customer service measured by On Time In Full (OTIF) was very low compared to competition. Moreover, capacity and material planning processes were entirely manual and not accurate, which led to excess inventory, shortages and plant underutilization.

Sustainability Impact

Avoidance of excess inventory and expedites.

Business Scope Challenges

RM Planning Accuracy

Raw Material Planning was inaccurate. Detailed BOM compositions, lead times, and alternative sources were not considered in the supply model and done in Excel.

Opportunity

With o9, the company was able to perform master planning with detailed BOM, material and capacity constraints and lead times leading to significant increases in the accuracy of their Raw Material planning.

Capacity Planning

The company was lacking good capacity planning, which led to inaccurate sales allocations.

Opportunity

With o9, the scenario-based capacity planning integrated with demand planning was leveraged to enable accurate decisions on quotas for sales personnel.

Order Promising

Order promising was inaccurate due to a lack of tools for detailed order planning.

Opportunity

With o9, the company had the tools available on o9’s platform to perform master planning and order promising, which took away the grunt work and increased planning accuracy.

Value Delivery

Key Functionalities Implemented

The o9 Enterprise Knowledge Graph was used for true End-to-End planning, including demand, capacity, master planning, and order promising. The ability to run scenarios and have real-time demand-supply synchronization is a game-changer for the organization.

Systems Replaced

Homegrown solutions and Excel.

Customer Benefits

Success Factors — 3 reasons why o9 was selected

  1. o9’s experience with the metal industry and its challenges.
  2. The ability of the platform to increase planning accuracy and capture deviations in execution.
  3. Flexibility of platform which permits adding execution layers such as order entry and custom workflows for sales teams.

KPI Impacted

  1. A significant improvement of OTIF.
  2. Inventory reduction.
  3. Increase in Risk Management planning accuracy.

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