REHAU Window Solutions implements AI Demand Forecasting
REHAU Window Solutions engaged KPS as a technical consulting and implementation partner, focusing on Google Cloud toolings, such as AI and predictive forecasting for supply chain management.
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I’m really impressed by the speed and success of this Proof of Value. We are happy to get KPS engaged on this challenge and looking forward to work with them in the future.
Jan Hoppe, Head of Supply Chain Management, REHAU Window Solutions
The challenge
REHAU Window Solutions wanted to act in the interests of its partners and customers and optimize their planning and forecasting processes as the current process (using SAP systems) is criticized for its insufficient quality, due to discontinuous consumption. Besides, it was aimed to optimize the planning and scheduling parameters, as these were calculated manually using standardized methods from the divisional scheduling manual.
The process
For implementation, we relied on hypothesis-based forecast modelling, which led to the verification of predictive value via six structured experimental designs.
The solution
KPS extracted SAP Intelligent Business Planning parameters and SAP Master Data, which the Supply Chain Management uses on a day to day basis, to plan their Demand Forecast. With the help of AutoML pre-trained forecasting models, we developed improved forecasting models, which can be used in the future to optimize Net Working Capital in manufacturing processes of REHAU Window Solutions.
The result
By combining historical internal data of REHAU Window Solutions with external data, KPS were able to increase the forecast quality by more than 10%, making stock and demand planning more efficient. The results were achieved within three months with the help of a cross functional team, consisting of Data / ML Engineers and Subject matter experts.
Impact in numbers
0
NWC Reduction
0
Forecast Improvement (MAE)
About REHAU Group
The REHAU Group unites companies across the construction, industrial, materials, medical, mobility, and furniture sectors under one roof. With its polymer-based solutions, this globally operating family-owned enterprise generates annual revenues of approximately €3 billion.
- Vertical/horizontal solution: Manufacturing &
Industrial - Primary project location: Germany
- More about REHAU Group
