This customer had the challenges of having an inaccurate forecast, with a lack of visibility to supply risk and capacity prioritization. Moreover, they were unable to use drivers of demand to better predict the future.
o9 Digital Brain for Tires
One of the world’s largest tire and rubber companies. Delivers a wide range of tires to customers around the world, including tires for passenger cars, trucks, buses, aircraft, construction, mining vehicles, motorcycles, and more.
Sustainability Impact
Reduction of waste due to a decrease in overproduction and avoidance of expedites.
Business Scope Challenges
Agile Planning
The forecast accuracy was low and lagging indicators were predominantly being used in the forecasting process.
Opportunity
With o9, the company was able to understand the drivers of demand (dealer/retailer sell-out & channel inventory information, pricing/promotion impacts, zip code level analytics etc.) and bring those together for faster gap detection and response to changing market conditions.
Inventory Management
They frequently experienced excesses and shortages, with potential inventory liabilities and additional price promotions to clear inventory.
Opportunity
With o9, the company was able to optimize and reduce inventory levels by incorporating drivers of demand into the platform’s highly different-
iated forecasting capabilities. These drivers
of demand are also turned into insights and used by the sales force to make assortment recommendations to the dealers.
Supply and Capacity Visibility
The current S&OP process did not efficiently drive actionable decisions, lacking visibility to supply risk and capacity prioritization based
on financials.
Opportunity
With o9, the company had the unique capability of connecting functions and planning processes to obtain full visibility on a single integrated cloud-native platform and to efficiently drive S&OP.
Value Delivery
Key Functionalities Implemented
The Enterprise Knowledge Graph was used to leverage integrated sales and demand planning, S&OP and what-if scenario planning.
Moreover, with o9, the company can ensure inclusion of market intelligence and store analytics into the planning processes.
Systems Replaced
Excel and Aspen.
Customer Benefits
Success Factors — 3 reasons why o9 was selected
- Integrated platform with strong collab- oration features and the ability to bring in key leading indicators of demand.
- Very intuitive UI / UX driving user adoption among the sales and planning community.
- Thought leadership in planning and decision-making.
KPI Impacted
- Increased forecast accuracy by 9.8% and reduced backorders by 30%.
- Reduction in missed sales opportunity driving top line growth.
- Reduction of lost sales.
