o9 Solutions, Inc. Case Studies Transforming Supply Chain Management for a Global Cosmetics Manufacturer

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	Transforming Supply Chain Management for a Global Cosmetics Manufacturer o9 Solutions, Inc.

Transforming Supply Chain Management for a Global Cosmetics Manufacturer

o9 Solutions, Inc.

Technology Category	Functional Applications - Manufacturing Execution Systems (MES) Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries	Life Sciences
Applicable Functions	Logistics & Transportation
Use Cases	Additive Manufacturing Demand Planning & Forecasting
Challenge	The customer, a multibillion-dollar global manufacturer of skin care, makeup, fragrance, and hair care products, was facing significant challenges in its supply and demand planning activities. These activities were heavily reliant on Excel and manual processes, which depended largely on the personal knowledge of each planner. The company lacked master production planning capabilities focusing on operational and strategic horizons. The process of pulling a consolidated demand picture was difficult and time-consuming due to the frequent need for manual interventions to estimate the impact of promotions, marketing, and new product introductions. The supply planning/scheduling was primarily a sequential planning process where each stage of the manufacturing network was planned one after the other, and material constraints were not integrated. Furthermore, there was a lack of inclusion of promotions and product launches in the demand forecasting process. Read More
About Customer	The customer is a multibillion-dollar global manufacturer of skin care, makeup, fragrance, and hair care products. They serve 150 markets worldwide and are known for their iconic brands. Their supply and demand planning activities were previously heavily reliant on manual processes and Excel, with no master production planning capabilities focusing on operational and strategic horizons. The company faced difficulties in consolidating a demand picture due to the frequent need for manual interventions to estimate the impact of promotions, marketing, and new product introductions. Read More
Solution	The company adopted o9's cloud-native platform to overcome these challenges. The platform provided full visibility over their demand picture, automating the process and reducing the need for manual interventions. It enabled a concurrent material and capacity constrained plan for both manufacturing and distribution, ensuring an integrated, more feasible, and better-executed plan. The platform also allowed for the inclusion of new product launch calendars directly on it, providing a 360-degree view of the forecast in units and dollars, considering internal and external drivers of demand. The Enterprise Knowledge Graph was used to build demand and supply-knowledge models with master production scheduling. This allowed for running all key planning processes across operational time horizons between 2 and 12 months in a single integrated and responsive platform, replacing the previous system, SAP APO. Read More Log in to view content
Contents

Technology Category

Functional Applications - Manufacturing Execution Systems (MES)

Platform as a Service (PaaS) - Application Development Platforms

Applicable Industries

Life Sciences

Applicable Functions

Logistics & Transportation

Use Cases

Additive Manufacturing

Demand Planning & Forecasting

Challenge

The customer, a multibillion-dollar global manufacturer of skin care, makeup, fragrance, and hair care products, was facing significant challenges in its supply and demand planning activities. These activities were heavily reliant on Excel and manual processes, which depended largely on the personal knowledge of each planner. The company lacked master production planning capabilities focusing on operational and strategic horizons. The process of pulling a consolidated demand picture was difficult and time-consuming due to the frequent need for manual interventions to estimate the impact of promotions, marketing, and new product introductions. The supply planning/scheduling was primarily a sequential planning process where each stage of the manufacturing network was planned one after the other, and material constraints were not integrated. Furthermore, there was a lack of inclusion of promotions and product launches in the demand forecasting process.

About Customer

The customer is a multibillion-dollar global manufacturer of skin care, makeup, fragrance, and hair care products. They serve 150 markets worldwide and are known for their iconic brands. Their supply and demand planning activities were previously heavily reliant on manual processes and Excel, with no master production planning capabilities focusing on operational and strategic horizons. The company faced difficulties in consolidating a demand picture due to the frequent need for manual interventions to estimate the impact of promotions, marketing, and new product introductions.

Solution

The company adopted o9's cloud-native platform to overcome these challenges. The platform provided full visibility over their demand picture, automating the process and reducing the need for manual interventions. It enabled a concurrent material and capacity constrained plan for both manufacturing and distribution, ensuring an integrated, more feasible, and better-executed plan. The platform also allowed for the inclusion of new product launch calendars directly on it, providing a 360-degree view of the forecast in units and dollars, considering internal and external drivers of demand. The Enterprise Knowledge Graph was used to build demand and supply-knowledge models with master production scheduling. This allowed for running all key planning processes across operational time horizons between 2 and 12 months in a single integrated and responsive platform, replacing the previous system, SAP APO.

Impact #1	The implementation of o9's platform brought about significant operational improvements for the company. The platform's ability to provide full visibility over the demand picture on an automated single integrated platform reduced the need for manual interventions, making the process more efficient. The concurrent material and capacity constrained plan enabled by o9 ensured an integrated, more feasible, and better-executed plan, improving the overall supply chain management. The inclusion of new product launch calendars directly on the platform provided a comprehensive view of the forecast, considering all drivers of demand. The use of the Enterprise Knowledge Graph for building demand and supply-knowledge models with master production scheduling allowed for running all key planning processes across operational time horizons in a single integrated platform, enhancing the company's strategic planning capabilities.

Impact #1

The implementation of o9's platform brought about significant operational improvements for the company. The platform's ability to provide full visibility over the demand picture on an automated single integrated platform reduced the need for manual interventions, making the process more efficient. The concurrent material and capacity constrained plan enabled by o9 ensured an integrated, more feasible, and better-executed plan, improving the overall supply chain management. The inclusion of new product launch calendars directly on the platform provided a comprehensive view of the forecast, considering all drivers of demand. The use of the Enterprise Knowledge Graph for building demand and supply-knowledge models with master production scheduling allowed for running all key planning processes across operational time horizons in a single integrated platform, enhancing the company's strategic planning capabilities.

Benefit #1	Reduction in cost of destruction
Benefit #2	Reduction in inventory and expedite costs
Benefit #3	Improvements in productivity

Benefit #1

Reduction in cost of destruction

Benefit #2

Reduction in inventory and expedite costs

Benefit #3

Improvements in productivity

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Overview

Transforming Supply Chain Management for a Global Cosmetics Manufacturer

Operational Impact

Quantitative Benefit