Bergauf (Novo Forecast Enterprise)

Automation of demand forecasting and inventory management processes in supply chains based on Novo Forecast Enterprise platform

About Customer

Bergauf develops, manufactures and sells construction materials in Russia, the CIS, and Europe. The company has 15 own and trolling sites at its disposal. The company sells its products in 300 + dealers in Russia and near abroad.

About the project

The company independently developed demand forecasting algorithms based on 1C. There was no further support for algorithms and analysis of their accuracy and sales forecasting was minimal, and the forecasting process itself did not have a leader. Simplified finished goods inventory management parameters were used.

Demand forecasting and inventory management were not considered in the supply chain. There was no transparent data for the analysis of surplus and stock deficit. All these problems led to production disruptions and rescheduling, as well as reduced availability of goods for the buyer and loss of money.

The customer needed to implement a tool that would help managers see the whole picture, learn about problems not from employees, but from planning. The customer also faced the following tasks:

• increase customer fill rate - product availability for customers;
• Reduce supply chain costs, such as inventory, write-offs, inefficient movements, and personnel costs.

It was decided to implement Novo Forecast Enterprise, because the solution optimizes the planning process and predicts demand for goods with high accuracy. The program receives data from all participants in the supply chain, analyzes them, taking into account external factors and predicts the required number of goods.

Result

Project deliverables:

• The implementation of Novo Forecast Enterprise paid for itself in about 12 months;
• An increase in the accuracy of forecasts occurred within the first month after implementation;
• Increased the planning horizon to 18 months;
• Volumetric scheduling throughout the supply chain with daily updates.