What happens when a world-leading metal powder manufacturer realizes its forecasting system is more of a patchwork than a precision tool?
Höganäs, a leader in the industry, faced this exact challenge. Recognizing the need for a cohesive, efficient system, they embarked on a journey to revolutionize their forecasting and inventory planning processes.
About Höganäs
Höganäs is a world-leading producer of iron and metal powders, and partners with customers to create solutions for automotive, brazing, electric motors, additive manufacturing, and water treatment. With a commitment to innovation and sustainability, the company continues to push the boundaries of material science, creating solutions for a resource-efficient future.
CHALLENGE
A supply chain out of control
Without a centralized forecasting system, Höganäs struggled to maintain control over its global supply chain. Economic shifts, evolving regulations, and varying demands across markets made accurate planning difficult.
Operating in 85 countries, their forecasting process depended on over 50 people using a patchwork of manual tools, leading to high error rates, excessive stock levels, and sluggish reporting cycles. Instead of guiding operations, forecasting had become a time-consuming challenge—one that slowed responsiveness and increased costs.
It was clear: Höganäs needed a more integrated, automated approach to regain control.
SOLUTION
A connected approach to forecasting
Having a clear view of demand across a global network was nearly impossible for Höganäs. The complexity of managing forecasts across multiple regions left gaps in visibility, making it difficult to respond to shifting market conditions. It was at this point that Ralf Carlström, Sales Director at Höganäs, turned to Optilon.
After evaluating several options, including major vendors, Carlström and his team decided to partner with Optilon. Their previous experience with Optilon during an ERP implementation had been positive, making the choice feel natural.
To handle the challenges, Optilon recommended an automated solution, integrating advanced analytics and a user-friendly collaboration tool. This new system allowed multiple sales teams across countries to contribute seamlessly to a unified forecast.
RESULT
Results and benefits of Optilon’s supply chain planning solution
The partnership between Höganäs and Optilon was a huge success and resulted in the following results:
MAIN BENEFITS
- Reduced forecast errors by 50%, improving demand accuracy and minimizing excess inventory.
- Cut reporting time in half, enabling faster decision-making and quicker responses to market changes.
- Implemented an automated forecasting solution, streamlining supply chain planning and reducing manual work.
- Optimized inventory and warehouse management, aiming for a 10% inventory reduction.
By embracing an automated and collaborative forecasting approach, Höganäs has turned its supply chain into a more agile and resilient system, positioning itself for long-term growth in an ever-changing market.
Struggling with supply chain complexity? Let’s talk.
With a track record of over 1,000 successfully completed projects and 20+ years’ experience, Optilon is your trusted supply chain optimization partner. Book a meeting with us to discuss how we can help you create a solution that aligns with your specific needs and future business goals.
