How to automate the processes of demand planning and inventory management in complex supply chains

“Bergauf” case
Novo Forecast Enterprise implementation case
  • The company profile
    “Bergauf” is a company that develops, produces and sells construction materials. It is the leading brand in Europe, Russia and CIS countries with a number of owned manufacturing units. The products are sold in more than 300 dealer stores.

    The project challenges

    • Independent development of demand forecasting algorithms based on 1C
    • There was no further support of algorithms and analysis of their accuracy
    • Sales forecasting was minimal
    • There was no leader in the forecasting process
    • Simplified parameters of inventory management of finished products were used
    • Demand forecasting and inventory management were not taken into account in the supply chain
    • Lack of transparent data for overstock and outstock analysis

    All that led to production breakdowns and re-planning as well as to reduction of products’ availability for a customer and money loss.


  • What was done

    • The company has contacted Novo BI, we discussed the tasks and started the project. We decided to implement Novo Forecast Enterprise, the system of forecasting automation, joint planning and supply chain optimization.
    • Implementation took from 3 to 6 months, and returned on its cost in about 12 months.
    • The accuracy of forecasts increased during the 1st month.
  • The project tasks
    • To implement the tool, which would help management to see the complete picture, in other words, to be aware of issues, not from employees, but from monitoring planning.
    • To increase customer fill rate – products’ availability for customers
    • To reduce expenses in the supply chain: inventories, write-offs, inefficient movements, personnel costs
How Novo BI solved the customer’s problem

A supply chain includes a big number of factors. To forecast such a complex system with large amount of data is quite difficult without AI. Therefore, the customer has decided to implement Novo Forecast Enterprise because the software optimizes the process of planning and forecasts demand for a product with high accuracy. The program receives data from all participants of the supply chain, analyzes it considering external factors and forecasts the necessary amount of the product.

Results

  • DPA growth to +15% points
  • The planning horizon increased to 18 months
  • Extensive calendar planning throughout the supply chain with daily updates
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