Blue Yonder > Case Studies > Michelin Drives Innovation and Collaboration

Michelin Drives Innovation and Collaboration

Customer Company Size

Large Corporate

Region

Europe

Country

France

Product

Blue Yonder S&OP

Tech Stack

Cloud-based solution

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Productivity Improvements
Cost Savings

Technology Category

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Automotive

Use Cases

Supply Chain Visibility
Demand Planning & Forecasting

Services

Cloud Planning, Design & Implementation Services

About The Customer

Michelin is a leading tire manufacturer, headquartered in ClermontFerrand in the Auvergne region of France. Michelin is present in more than 170 countries and operates 68 production plants in 17 different countries. In addition to the Michelin brand, the company owns a strong brand portfolio, including BFGoodrich, Kleber, Tigar, Riken, Kormoran, and the Uniroyal brand for the North American market, among others. Michelin’s supply chain complexity increased substantially and had become more difficult to manage due to scarce capacity, a growing portfolio of tire types and a significant increase in parts resulting from the company’s innovation efforts.

The Challenge

Michelin, a leading tire manufacturer, faced increased supply chain complexity due to scarce capacity, a growing portfolio of tire types, and a significant increase in parts resulting from the company’s innovation efforts. The market in which the company operates had also become increasingly volatile and competitive, as well as impacted by seasonal demand. After analyzing its existing S&OP decision-making process, several potential improvements were identified including undetected opportunities, risks, and constraints. Legacy tools and processes used by the Michelin business units were heterogeneous and didn’t have the flexibility necessary to support its S&OP transformation.

The Solution

Michelin deployed Blue Yonder’s agile implementation approach, which includes a sequence of three-week sprints of designing, constructing, testing, and validating the solution. This rapid prototyping methodology enabled the team to learn and mature quickly in their use of the solution while achieving results through each phase of the project, ensuring adoption by the business. A key enabler of this approach was the use of Blue Yonder cloud launch to support rapid deployment and performance testing. In addition to the organizational and technology rollout, Michelin conducted a gap analysis of its S&OP processes and its position on the S&OP maturity curve. The teams identified process gaps and data consistency issues and built an action plan to close those gaps.

Operational Impact

Increased planning efficiency
Improved decision-making process
Minimized supply chain risks
Improved visibility and greater accountability with key stakeholders

Quantitative Benefit

Significantly increased visibility into future risks and constraints
Enabled multiple entities to work together to build common tactical sales, production and stock plans
Enabled local simulations to support demand management in the regions, as well as capacity management at the plants, all using one set of data to ensure consistency