DALLAS–()– , a number one enterprise AI software program platform supplier for reworking planning and decision-making, and analyst agency right now introduced that LKQ Europe captured important provide chain planning insights on account of the corporate’s participation in a pilot program designed to check outside-in planning ideas via . Co-founded by o9 and Provide Chain Insights, Challenge Zebra is an open-source trade effort to outline and activate outside-in processes to show the worth of outside-in provide chain planning processes.
LKQ Europe is the area’s main automotive aftermarket distributor, offering varied spare elements for automobiles and vans at roughly 1,000 branches situated all through 20 international locations. In Germany, the place the Challenge Zebra pilot passed off, LKQ Europe operates 180 branches served by a central warehouse that manages roughly 1.4 million particular person SKUs.
The Challenge Zebra analysis centered on utilizing outside-in market information to enhance the corporate’s demand and provide sensing capabilities and create a extra agile and worthwhile provide chain. The research additionally examined how bi-directional orchestration versus the extra conventional method of multi-tier stock optimization may enhance LKQ Europe’s stock purchase plan.
The outcomes of the pilot far exceeded LKQ Europe’s expectations. When the corporate integrated o9’s machine studying capabilities and market-driven information into the method, the Forecast Worth Added (FVA) improved by 17.3% – giving LKQ Europe unprecedented perception into market indicators. LKQ Europe additionally captured important insights by measuring the impression of the bullwhip impact as a part of the Challenge Zebra pilot program. With the bullwhip impact, very small variations on the demand stage can turn into distorted and amplified all through the availability chain. The upper the bullwhip impact, the upper the chance firms will expertise points that embody expedited cargo prices, extra stock and misplaced gross sales. Utilizing o9’s predictive analytics and exterior market indicators, LKQ Europe diminished the bullwhip impact on its enterprise from 48% to 37%. Via Challenge Zebra, o9 constructed an answer to measure and quantify the impression of bullwhip amplification on provide chains by leveraging a bi-directional simulation mannequin.
“For a while, I had been satisfied of the facility that outside-in planning may have on our provide chain,” mentioned Nicole Miara, Digital Transformation Lead, LKQ Europe. “Our participation in Challenge Zebra was fairly the eye-opening journey. This wasn’t a software program or IT venture however relatively a enterprise implementation venture that got here with a fantastically various group of information scientists, enterprise leaders, and provide chain professionals who’re a part of the Challenge Zebra suppose tank neighborhood. The result of the pilot has led us to rethink the orchestration levers that may be pulled sooner or later to make higher provide chain choices primarily based on market, provider, and channel information.”
“With solely 3% of the market prepared to undertake new approaches to fixing provide chain issues, Challenge Zebra tried to interrupt via the loggerhead of conventional gross sales approaches for business engagements to implement yesterday’s options. Provide chain leaders have to query the outcomes of conventional planning by testing and studying via efforts like Challenge Zebra. Congratulations to LKQ Europe for its work as a provide chain innovator,” mentioned Lora Cecere, Founding father of Provide Chain Insights.
Fred Baumann, Vice President, World Trade Options at o9 Options, mentioned, “We applaud Nicole and her staff at LKQ Europe for placing their confidence in Challenge Zebra and attempting one thing fully new. We centered on utilizing market-driven forecast information that integrated inflation indicators, in addition to logistics indicators round lead time predictability and variability to assist LKQ Europe higher sense their prospects’ and suppliers’ response to altering market circumstances and visualize the impression on their enterprise early on. This essential analysis has the potential to set the worldwide customary for the way firms use information to forecast demand and make provide chain choices.”
To study extra about Challenge Zebra, go to.
About LKQ Europe
LKQ Europe, a subsidiary of LKQ Company, with its head workplace in Zug, Switzerland, is the main distributor of automotive aftermarket elements for automobiles, business vans, and industrial automobiles in Europe. It at the moment employs roughly 26,000 individuals with a community of greater than 1,000 branches and roughly $6.1 billion in income in 2021. The group provides greater than 100,000 unbiased workshops in over 20 European international locations.
The group consists of Euro Automotive Elements, LKQ Fource, RHIAG Group, Elit, LKQ CZ, and STAHLGRUBER Group, in addition to recycling specialist, Atracco. LKQ additionally holds a minority curiosity in MEKO Group.
About Provide Chain Insights
Based in February 2012 by Lora Cecere,is in its tenth yr of operation. The corporate’s mission is to ship unbiased, actionable, and goal recommendation for provide chain leaders. The objective is to assist leaders perceive provide chain traits, evolving applied sciences, and which metrics matter.
About o9 Options, Inc.
o9 Options is a number one AI-powered platform for built-in enterprise planning and decision-making for the enterprise. Whether or not it’s driving demand, aligning demand and provide, or optimizing business initiatives, any planning course of might be made quicker and smarter with o9’s AI-powered digital options. o9 brings collectively know-how improvements—resembling graph-based enterprise modeling, huge information analytics, superior algorithms for state of affairs planning, collaborative portals, easy-to-use interfaces, and cloud-based supply—into one platform. For extra info, please go to.