Building supplies and equipment manufacturer Knauf is building an autonomous supply chain with Blue Yonder Demand Planning, a cloud-native AI and machine learning based demand planning system. Knauf will gain industry-focused insights to improve forecasting and supply chain demand planning.

Bavaria-based Knauf has over 300 production sites in more than 90 countries. The company’s product range includes drywall systems, plaster, ceiling and insulation materials. It has adopted a supply chain strategy to create an autonomous, end-to-end supply chain. It aims to digitalise, orchestrate, and automate all supply chain processes across its three global business units.

The Blue Yonder solution will serve as the backbone of Knauf’s supply chain transformation, enhancing forecast accuracy by considering dynamic external and internal variables, enabling causal simulations and automating processes.

“Blue Yonder has been an integral part of our digital transformation journey, and their Demand Planning solution provides the agility and precision we need to adapt to evolving market demands,” said Dr. Martin Brown, Chief Supply Chain Officer, Knauf. “This collaboration marks a critical milestone in realising our 2032 supply chain strategy. By leveraging advanced AI and ML technologies, we are not only enhancing forecast accuracy but also building a future-ready supply chain that delivers end-to-end operational excellence, sustainability, and an exceptional customer experience.”

With Blue Yonder Demand Planning solution built on the Blue Yonder Platform, Knauf expects to achieve the following:

• Agile and integrated planning: Knauf will deploy adaptive demand plans by integrating real-time data and systems, enabling streamlined operations and enhanced responsiveness to market shifts.
• Advanced scenario planning: Knauf will optimise demand planning processes by orchestrating advanced scenario simulations to manage variability effectively.
• Enhanced forecast accuracy and inventory optimisation: By combining market intelligence with advanced statistical methods and ML models, Knauf will improve demand forecasting accuracy and optimise SKU levels, ultimately reducing excess inventory and working capital.
• Dynamic decision-making: Knauf will enable real-time demand scenario planning, shortening forecasting cycles and empowering faster, data-driven decisions to meet customer needs more effectively.
• Tailored and extensible demand planning solutions at scale: Knauf can design and implement tailored demand planning workflows to address unique business challenges while ensuring scalability across the business divisions.

“Blue Yonder Demand Planning solution empowers manufacturers like Knauf to swiftly adapt to evolving external dynamics and market conditions, ensuring their supply chains remain agile, sustainable, and competitive,” said Terry Turner, president, manufacturing, Blue Yonder. “With Blue Yonder, Knauf can optimise its supply chain and confidently pursue its 2032 strategy, a vision that Blue Yonder is proud to support.”