Knauf Partners with Blue Yonder to Create Autonomous Supply Chain
In the competitive and fast-paced building materials and systems sector, manufacturers face constant pressure to drive growth and enhance financial performance. For Knauf, a global leader in building materials, staying ahead of the curve requires leveraging cutting-edge technology and innovative solutions. That’s why Knauf has turned to Blue Yonder, deploying its cloud-native Demand Planning solution. With advanced AI and machine learning (ML) capabilities, the solution aims to provide Knauf with industry-specific insights, boosting decision-making efficiency and improving forecast accuracy to further elevate its supply chain capabilities. This transformation is being guided by Blue Yonder’s professional services team.
Since its inception in 1932, Knauf has been a symbol of innovation, quality, and sustainability. With over 300 production facilities across 90 countries, the company’s broad portfolio includes everything from drywall and plaster systems to ceiling solutions and innovative insulation materials. These products are integral to building sustainable and efficient construction projects globally. To fulfill its ambitious vision for 2032, Knauf has committed to creating an autonomous, end-to-end supply chain. This goal will be achieved by digitizing, automating, and orchestrating processes across its three global business units.
In pursuit of its Supply Chain Strategy 2032, Knauf looked to Blue Yonder, a long-term partner in supply chain optimization. The collaboration will leverage Blue Yonder’s Demand Planning solution as the core of Knauf’s supply chain transformation, enhancing its ability to forecast demand more accurately by incorporating both internal and external variables. The AI-powered solution will allow Knauf to run causal simulations and automate critical processes, increasing both efficiency and adaptability.
“We’ve been working closely with Blue Yonder as a key partner in our digital transformation journey. Their Demand Planning solution equips us with the agility and precision needed to respond swiftly to fluctuating market demands,” said Dr. Martin Brown, Chief Supply Chain Officer at Knauf. “This marks a pivotal moment in our Supply Chain 2032 strategy. By embracing advanced AI and ML technologies, we are not only improving forecast accuracy but also positioning ourselves to build a resilient, sustainable supply chain that delivers excellence in operations and customer experience.”
The integration of the Blue Yonder Demand Planning solution will help Knauf achieve several key objectives:
- Agile and Integrated Planning: By adopting adaptive demand plans, Knauf will integrate real-time data across systems, simplifying operations and enhancing responsiveness to market changes.
- Advanced Scenario Planning: The solution’s ability to simulate various scenarios will allow Knauf to better manage demand variability, optimizing planning decisions in uncertain environments.
- Improved Forecast Accuracy and Inventory Optimization: With advanced statistical techniques and machine learning models, Knauf will enhance its forecasting capabilities, allowing for more accurate predictions and better management of SKU levels. This will result in reduced excess inventory and lower working capital requirements.
- Dynamic Decision-Making: The solution will enable Knauf to make data-driven decisions in real-time, improving the company’s ability to meet customer needs swiftly and effectively while shortening forecast cycles.
- Tailored and Scalable Solutions: The flexibility of Blue Yonder’s platform will enable Knauf to customize demand planning workflows according to its specific business requirements, while maintaining scalability across various business divisions.
The building materials industry, like many others, faces challenges related to fluctuating demand, unexpected disruptions, evolving customer behaviors, and rising inflation. Traditional forecasting methods are often inadequate to address these dynamics. Blue Yonder’s Demand Planning solution, powered by AI and hosted on Microsoft Azure, helps companies like Knauf overcome these obstacles by transforming how they predict, plan, collaborate, and make decisions.
“The ability to quickly adapt to changing market conditions and external dynamics is critical for companies like Knauf,” said Terry Turner, President of Manufacturing at Blue Yonder. “Blue Yonder’s Demand Planning solution ensures that manufacturers can maintain agility, sustainability, and a competitive edge in today’s complex environment. We’re excited to support Knauf in their pursuit of their 2032 strategy.”
In addition to the Demand Planning solution, Knauf also utilizes several other Blue Yonder tools to enhance its operations:
- Blue Yonder Integrated Business Planning: This solution helps align demand and supply across Knauf’s business units, ensuring that the company is able to meet market needs efficiently.
- Blue Yonder Order Promising & Optimization: Knauf uses this tool to provide reliable delivery estimates and optimize order fulfillment, improving customer satisfaction while reducing costs.
By integrating these solutions, Knauf is building a comprehensive, future-proof supply chain capable of responding to both current and emerging challenges. The company is committed to maintaining its leadership position by fostering innovation, improving operational performance, and meeting customer demands with greater precision.
As Knauf works toward achieving its 2032 supply chain vision, its partnership with Blue Yonder is a critical part of its broader strategy. Together, they are laying the foundation for a more agile, data-driven, and sustainable supply chain that will enable Knauf to continue thriving in an ever-evolving market.
With Blue Yonder’s Demand Planning solution at the heart of this transformation, Knauf is poised to achieve a higher level of operational excellence, agility, and sustainability in its supply chain, driving its long-term success and maintaining its position as a global leader in the building materials industry.
