o9 Solutions, Inc. Case Studies Revamping Upholstered Furniture Company's S&OP with IoT

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	Revamping Upholstered Furniture Company's S&OP with IoT o9 Solutions, Inc.

Revamping Upholstered Furniture Company's S&OP with IoT

o9 Solutions, Inc.

Technology Category	Functional Applications - Inventory Management Systems Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries	Transportation
Applicable Functions	Procurement Warehouse & Inventory Management
Use Cases	Demand Planning & Forecasting Inventory Management
Services	System Integration
Challenge	The company, a major player in the upholstered furniture industry with a sales volume of $1.7bn, primarily in North America, was grappling with the challenge of integrating its S&OP activities. These activities included forecasting, capacity planning, inventory and replenishment planning, and procurement functions. The company was using multiple tools, primarily Excel, for creating their forecast, leading to inaccurate demand forecasts and a lack of demand visibility and collaboration. Furthermore, the company's style level forecasting was hampered by complex processes and lack of data visibility due to the use of legacy systems. This limited them to top-down forecasting. Another challenge was the inclusion of the Distribution Centers' (DCs) capacity to ensure optimized inventory levels for Build-to-Stock. Read More
About Customer	The customer is a leading manufacturer, marketer, importer, exporter, distributor, and seller of upholstered furniture products and accessories. The company has a significant presence in international markets, with the majority of its $1.7bn sales coming from North America. The company was seeking to implement new processes and software to ensure complete integration between its S&OP activities, including forecasting, capacity planning, inventory and replenishment planning, and procurement functions. The company's goal was to improve forecast accuracy, reduce working capital with optimally managed inventory, and enable data-driven agile decision-making. Read More
Solution	The company partnered with o9 to improve forecast accuracy, reduce working capital with optimally managed inventory, and enable data-driven agile decision-making. With o9, all demand forecasts were executed in a unique system that provided collaborative options, enabling the establishment of accurate demand forecasts. The company could now predict product demand in the market and use bottom-up forecasting. The DC Capacity was modeled into the platform, allowing the company's teams to include the capacity as a constraint in the demand forecast and replenishment calculations. Key functionalities implemented included Demand Planning, Supply Planning, S&OP, Supplier Collaboration, Available-to-Promise, and Financial Planning (AOP) process area. This helped replace many manual and disparate spreadsheets. The systems replaced were Excel & Demand Solutions (Logility product), and the ERP was JDA. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Platform as a Service (PaaS) - Application Development Platforms

Applicable Industries

Transportation

Applicable Functions

Procurement

Warehouse & Inventory Management

Use Cases

Demand Planning & Forecasting

Inventory Management

Services

System Integration

Challenge

The company, a major player in the upholstered furniture industry with a sales volume of $1.7bn, primarily in North America, was grappling with the challenge of integrating its S&OP activities. These activities included forecasting, capacity planning, inventory and replenishment planning, and procurement functions. The company was using multiple tools, primarily Excel, for creating their forecast, leading to inaccurate demand forecasts and a lack of demand visibility and collaboration. Furthermore, the company's style level forecasting was hampered by complex processes and lack of data visibility due to the use of legacy systems. This limited them to top-down forecasting. Another challenge was the inclusion of the Distribution Centers' (DCs) capacity to ensure optimized inventory levels for Build-to-Stock.

About Customer

The customer is a leading manufacturer, marketer, importer, exporter, distributor, and seller of upholstered furniture products and accessories. The company has a significant presence in international markets, with the majority of its $1.7bn sales coming from North America. The company was seeking to implement new processes and software to ensure complete integration between its S&OP activities, including forecasting, capacity planning, inventory and replenishment planning, and procurement functions. The company's goal was to improve forecast accuracy, reduce working capital with optimally managed inventory, and enable data-driven agile decision-making.

Solution

The company partnered with o9 to improve forecast accuracy, reduce working capital with optimally managed inventory, and enable data-driven agile decision-making. With o9, all demand forecasts were executed in a unique system that provided collaborative options, enabling the establishment of accurate demand forecasts. The company could now predict product demand in the market and use bottom-up forecasting. The DC Capacity was modeled into the platform, allowing the company's teams to include the capacity as a constraint in the demand forecast and replenishment calculations. Key functionalities implemented included Demand Planning, Supply Planning, S&OP, Supplier Collaboration, Available-to-Promise, and Financial Planning (AOP) process area. This helped replace many manual and disparate spreadsheets. The systems replaced were Excel & Demand Solutions (Logility product), and the ERP was JDA.

Impact #1	The implementation of o9's solution led to a significant transformation in the company's S&OP activities. The company was able to replace multiple tools with a unique system that provided collaborative options for accurate demand forecasts. The company could now predict product demand in the market and use bottom-up forecasting, a significant improvement from the previous top-down forecasting. The inclusion of DC Capacity in the platform allowed the company's teams to include the capacity as a constraint in the demand forecast and replenishment calculations, ensuring optimized inventory levels. The implementation of key functionalities like Demand Planning, Supply Planning, S&OP, Supplier Collaboration, Available-to-Promise, and Financial Planning (AOP) process area replaced many manual and disparate spreadsheets, leading to more efficient and streamlined operations.

Impact #1

The implementation of o9's solution led to a significant transformation in the company's S&OP activities. The company was able to replace multiple tools with a unique system that provided collaborative options for accurate demand forecasts. The company could now predict product demand in the market and use bottom-up forecasting, a significant improvement from the previous top-down forecasting. The inclusion of DC Capacity in the platform allowed the company's teams to include the capacity as a constraint in the demand forecast and replenishment calculations, ensuring optimized inventory levels. The implementation of key functionalities like Demand Planning, Supply Planning, S&OP, Supplier Collaboration, Available-to-Promise, and Financial Planning (AOP) process area replaced many manual and disparate spreadsheets, leading to more efficient and streamlined operations.

Benefit #1	Reduction of inventory, excess waste, and shipping costs
Benefit #2	Improved inventory turns
Benefit #3	Customer satisfaction (reduced backlog)

Benefit #1

Reduction of inventory, excess waste, and shipping costs

Benefit #2

Improved inventory turns

Benefit #3

Customer satisfaction (reduced backlog)

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Overview

Revamping Upholstered Furniture Company's S&OP with IoT

Operational Impact

Quantitative Benefit