How Knauf is Transforming its Supply Chain with Blue Yonder

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Knauf has formed a fruitful partnership with Blue Yonder. Picture: Blue Yonder
Knauf is partnering with Blue Yonder to address challenges in its S&OP, beginning with the implementation of Demand Planning and Supply Planning

Knauf, a global leader in construction materials since 1932, operates no fewer than 300 plants in 92 countries and employs more than 41,000 people.

Central to the company's growth is its commitment to delivering high-quality solutions and empowering customers with reliable service. As part of its Knauf100 strategy, Knauf aims to lead the market in digital customer engagement and supply chain operations.

However, recognising limitations in its traditional sales and operations planning (S&OP), the company saw a critical need to modernise its approach to demand planning, order fulfilment and supply chain processes. Manual methods were no longer sufficient to meet the business’s expectations for forecast accuracy and customer reliability, making digital transformation a priority.

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Knauf partnered with Blue Yonder to address these challenges, starting with the implementation of Demand Planning and Supply Planning in its insulation and ceilings businesses. These solutions focus on improving demand forecasting accuracy at the SKU (stock-keeping unit) level while optimising downstream supply chain operations. The result is enhanced forecast accuracy, streamlined planning and reduced working capital.

By adopting Blue Yonder’s tools, Knauf aims to provide predictive insights on product availability, ensuring timely and accurate customer order fulfilment. It's an approach also aligns with the company’s strategy of creating a fully digital supply chain to boost efficiency across global operations.

Transforming planning processes

Knauf’s ambition to lead in digital supply chain operations required a fundamental shift in managing global demand and supply challenges. Clearly, accurate planning and the ability to adapt quickly are crucial to meeting customer expectations.

The company began with Blue Yonder’s Demand Planning solution, which focuses on improving forecasting accuracy for its insulation and ceilings products. By 2024, Knauf had expanded its collaboration with Blue Yonder to include Supply Planning, adding precision to production scheduling and enhancing its ability to meet customer demand.

Knauf is renowned for high-quality plasterboards, plaster, ceiling materials and insulation products. Picture: Knauf

This transformation not only improves decision-making but also bridges digital gaps in sales, production and order fulfilment. With these tools in place, Knauf is building a supply chain that integrates advanced technology to ensure consistent product availability and reliable service delivery.

Looking ahead, Knauf is investing in Blue Yonder’s Cognitive Demand Planning, set to go live in its European gypsum operations in 2025. This AI-driven solution will enable even greater levels of integration and forecasting precision, moving the company closer to achieving an end-to-end digital supply chain.

Aligning with strategic goals

Knauf’s adoption of Blue Yonder solutions is integral to its aforementioned Knauf100 strategy as they allow the firm to deliver on its promise of reliable product availability forecasts and faster order fulfilment. Implementation represents a key step in Knauf’s journey towards becoming a digital leader in customer interactions and supply chain management.

Partnering with Accenture as an implementation and maintenance partner, Knauf ensures that Blue Yonder’s solutions effectively support its digitalisation objectives. The company is reporting tangible benefits, including improved forecast accuracy, SKU-level visibility and better supply planning. Reduced working capital and enhanced service reliability are among the early gains seen as a result of the transformation.

Knauf also highlights the value of predictive capabilities in Blue Yonder’s Order Promiser application, which the company expects will improve service reliability further.

Martin Brown, Chief Supply Chain Officer at Knauf

Reflecting on the journey, Martin Brown, Chief Supply Chain Officer at Knauf, says: “Blue Yonder helps us understand and manage customer demand, enabling accurate forecasts and efficient supply planning. We’re achieving real transformation in our supply chain, ensuring our customers have a reliable source of supply.”

Heading towards an AI-enabled future

Knauf’s vision for the future involves deeper integration of AI-enabled solutions across its supply chain.

By combining planning and execution capabilities, the company is set to realise its goal of a fully-digital supply chain. This will help Knauf achieve one of its core Knauf100 objectives: to fulfil 95% of customer demands on time and in full.

Martin concludes: “The Blue Yonder composable journey will help us to reach a number of our Knauf100 goals by having a digital end-to-end supply chain solution.

"Our vision for Blue Yonder is that it will enable us to fulfil our customer demands on time and in full 95% of the time, thereby helping Knauf to remain a reliable partner to our customers.”


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