Knauf Builds an Autonomous Supply Chain With Blue Yonder

Global leader in building materials and construction systems chooses Blue Yonder to enhance supply chain agility and achieve strategic objectives leveraging AI and ML

In the highly competitive and dynamic building materials and systems industry, manufacturers need to drive strategic growth and financial performance to succeed. That’s why Knauf, a globally leading manufacturer of building materials and construction systems, has chosen to deploy Blue Yonder Demand Planning, a cloud-native solution with cognitive capabilities that utilizes artificial intelligence (AI) and machine learning (ML). The solution will enable Knauf to gain access to industry-focused insights that enable faster decisioning and more precise forecasting to further transform its supply chain demand planning capabilities. The solution deployment is led by Blue Yonder Professional Services.

Since 1932, Knauf has been synonymous with innovation, quality, and sustainability, boasting over 300 production sites in more than 90 countries. The company’s extensive product range – from drywall systems to plaster and ceiling solutions – and innovative insulation materials enables sustainable and efficient construction projects worldwide. To realize its 2032 supply chain strategy, Knauf required a holistic approach to processes and technologies. This strategy aims to create an autonomous, end-to-end supply chain by digitalizing, orchestrating, and automating all supply chain processes across its three global business units.

To achieve this, Knauf turned to Blue Yonder, its long-time supply chain solutions provider. The Blue Yonder solution will serve as the backbone of Knauf's supply chain transformation, enhancing forecast accuracy by considering dynamic external and internal variables, enabling causal simulations and automating processes.

“Blue Yonder has been an integral part of our digital transformation journey, and their Demand Planning solution provides the agility and precision we need to adapt to evolving market demands,” said Dr. Martin Brown, Chief Supply Chain Officer, Knauf. “This collaboration marks a critical milestone in realizing our 2032 supply chain strategy. By leveraging advanced AI and ML technologies, we are not only enhancing forecast accuracy but also building a future-ready supply chain that delivers end-to-end operational excellence, sustainability, and an exceptional customer experience.”

With Blue Yonder Demand Planning solution built on the Blue Yonder Platform, Knauf expects to achieve the following:

• Agile and integrated planning: Knauf will deploy adaptive demand plans by integrating real-time data and systems, enabling streamlined operations and enhanced responsiveness to market shifts.
• Advanced scenario planning: Knauf will optimize demand planning processes by orchestrating advanced scenario simulations to manage variability effectively.
• Enhanced forecast accuracy and inventory optimization: By combining market intelligence with advanced statistical methods and ML models, Knauf will improve demand forecasting accuracy and optimize SKU levels, ultimately reducing excess inventory and working capital.
• Dynamic decision-making: Knauf will enable real-time demand scenario planning, shortening forecasting cycles and empowering faster, data-driven decisions to meet customer needs more effectively.
• Tailored and extensibledemand planning solutions at scale: Knauf can design and implement tailored demand planning workflows to address unique business challenges while ensuring scalability across the business divisions.

Today, companies face challenges due to fluctuations in demand caused by unexpected supply chain disruptions, evolving customer habits, inflation and a growing demand for sustainable products and processes. These industry dynamics pose significant challenges for conventional forecasting methods. Blue Yonder Demand Planning solution, hosted on Microsoft Azure, addresses these challenges with AI-based capabilities, transforming how companies collaborate, predict, plan and make decisions.

"Blue Yonder Demand Planning solution empowers manufacturers like Knauf to swiftly adapt to evolving external dynamics and market conditions, ensuring their supply chains remain agile, sustainable, and competitive,” said Terry Turner, president, manufacturing, Blue Yonder. “With Blue Yonder, Knauf can optimize its supply chain and confidently pursue its 2032 strategy, a vision that Blue Yonder is proud to support."

Additional Resources

• Learn more about Blue Yonder Demand Planning
• Learn more about Blue Yonder Platform
• Video: Next Generation Demand Planning with Cognitive Demand Planning
• Video: What is a composable journey
• Video: Knauf Case Study
• Blue Yonder footprint at Knauf includes also the following solutions:
  • Blue Yonder Integrated Business Planning
  • Blue Yonder Order Promising & Optimization

About Knauf

The Knauf Group is a globally leading manufacturer of building materials and construction systems. With over 300 production sites in more than 90 countries, Knauf represents innovation, quality, and sustainability. Our comprehensive product range, which spans from drywall systems to plaster and ceiling solutions and innovative insulation materials, enables us to realize sustainable and efficient construction projects around the world. knauf.com/en

About Blue Yonder

Blue Yonder is the world leader in digital supply chain transformation. Retailers, manufacturers and logistics service providers worldwide rely on Blue Yonder to optimize and accelerate their supply chain from planning through fulfillment, delivery, and returns. Blue Yonder’s AI-driven supply chain platform and multi-enterprise, multi-tier network enable more accurate forecasting and dynamic management of capacity, inventory and transport. Blue Yonder helps businesses navigate modern supply chain complexity and volatility with more resilient, sustainable supply chains to delight customers, scale profitably, and run flawlessly. blueyonder.com

“Blue Yonder” is a trademark or registered trademark of Blue Yonder Group, Inc. Any trade, product or service name referenced in this document using the name “Blue Yonder” is a trademark and/or property of Blue Yonder Group, Inc. All other company and product names may be trademarks, registered trademarks or service marks of the companies with which they are associated.

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