Zumtobel Group optimizes planning processes with artificial intelligence

Efficiency Increase through AI-Supported Demand Forecasting

The Zumtobel Group, a leading provider of lighting solutions, modernized its complex and manual planning processes by implementing the AI.S² Demand Forecasting solution from paiqo. This transition led to more accurate forecasts, a significant increase in efficiency, and more flexible supply chain management, thereby reducing delays and costs.

Project overview

The challenge

The Zumtobel Group needed to modernize its complex, manual planning processes to increase efficiency and create more accurate forecasts.

Solution

By implementing an AI-based solution from paiqo, the Zumtobel Group was able to automate and optimize its planning processes.

Benefit

The use of artificial intelligence and machine learning led to more accurate forecasts, a reduction in the error rate, increased efficiency, and more flexible supply chain management.

The challenge

The Zumtobel Group, an international lighting corporation and leading provider of innovative lighting solutions, components, and related services, faced the challenge of modernizing its complex, manual planning processes for product demand. The previous methods led to inaccuracies in forecasts and impaired the efficiency of operations. With over 10,000 different raw materials from about 500 suppliers and more than 250,000 sellable product variants, the complexity was enormous. Market-driven fluctuating demands and partially missing planning information made precise supply chain management difficult, leading to delays and increased costs. To address these challenges, agile and timely demand planning, as well as the use of a highly configured tool, were required.

Solution

The Zumtobel Group recognized the need to modernize its planning processes and decided to collaborate with paiqo, this year’s winner of the “Partner of the Year Award 2024,” and Microsoft Austria. Together, they analyzed the existing processes and identified significant optimization opportunities, particularly in the reliance on manual inputs and the integration of external data sources. The AI.S² Demand Forecasting Solution from AI Software Solutions, a subsidiary of paiqo, was integrated via the Microsoft Azure platform. This solution enabled the automated creation of precise forecasts in the shortest possible time through artificial intelligence, without requiring extensive IT knowledge. This shift to an automated forecasting tool brought significant benefits, especially more accurate demand and revenue forecasts for a variety of product variants in different countries.

Benefit

The implementation of the AI-based solution led to a significant increase in efficiency and precision in the Zumtobel Group’s planning processes. Machine learning and AI automated the processes, reduced the error rate, and enabled more flexible supply chain management. This not only optimized the customer-facing value chain but also unlocked further potential within the global network of plants. The increased efficiency and precise forecasts confirmed the correctness of this decision. The Zumtobel Group was able to respond better to market changes and use resources more efficiently, resulting in reduced delays and costs.

You can find the entire article here at Microsoft: News Microsoft Austria

„In collaboration with paiqo and Microsoft Austria, we were able to implement a customized solution within a few months that fundamentally changed our way of working in certain processes. Through automated and data-driven forecasts, we developed a reliable solution that helps us respond better to market changes and use resources more efficiently. “,
– Jens Jürgens, Projektleiter and Managing Director Operations at Zumtobel