Michelin

Success Story

Michelin

Demand planning, Fulfilment, Order Optimization, Sales and Operations Planning, and Transport Management

Michelin transforms to a market-segmented supply chain with Blue Yonder

Das Unternehmen

Michelin is a €27 billion tire manufacturer headquartered in Clermont-Ferrand, France, with a supply chain footprint comprising 65 factories and 130 logistics facilities. It serves OEM customers and the tire replacement market with around 10,000 SKUs of finished products, supported by around 15,000 SKUs of semi-finished products and raw material components.

Die geschäftliche Herausforderung

Michelin has been using Blue Yonder for 25 years, and in around 2019, it decided to redesign its supply chain as part of a transformation program to adopt a new supply chain design to accommodate standardized management practices across multiple business lines and regions, which was a significant challenge.

Die Lösung

Michelin has been using Blue Yonder for 25 years for demand planning, fulfilment, order optimization, sales and operations planning, and transport management. Michelin needed a redesigned ‘backbone’ supply chain solution to start to build a more segmented supply chain strategy.

“We have been steadily improving our logistics operations, thanks to great teamwork between Michelin and Blue Yonder, and this has led to an improvement in our service levels, and we have solved a lot of situation pinpoints thanks to great teamwork.”

–Camille Demarquilly, VP Global Supply Chain, Michelin

The S&OP journey

 

Michelin has been a Blue Yonder customer since 2003. However in 2014 Michelin decided to deploy 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.

Zusätzlich zur organisatorischen und technologischen Einführung führte Michelin eine Lückenanalyse seiner S&OP-Prozesse und seiner Position auf der S&OP-Reifegradkurve durch. Die Teams identifizierten Prozesslücken und Probleme mit der Datenkonsistenz und erstellten einen Aktionsplan, um diese Lücken zu schließen. Der Aktionsplan wurde anschließend in monatliche Ziele und monatliche Statusberichte umgesetzt, um die organisationsweite Verantwortlichkeit zu stärken. Das Unternehmen trat außerdem der S&OP Special Interest Group von Blue Yonder bei, wodurch es die Möglichkeit erhielt, von den Erfahrungen und Best Practices anderer Kunden zu lernen.

Michelin wandte sich an Blue Yonder, um Unterstützung für das transformative S&OP-Projekt zu erhalten, das Prozess-, Organisations- und Technologieänderungen umfasst, um die Entscheidungen des Lieferkettenplans und die funktionsübergreifende Ausrichtung zu verbessern.

Die Vertriebs- und Betriebsplanungsfunktionen von Blue Yonder ermöglichten es Michelin, innerhalb des Führungsteams der Geschäftseinheit einen gemeinsamen Bedarfs-, Vertriebs- und Produktionsplan besser zu teilen und Prioritäten zu verwalten. Sie ermöglichen dem Unternehmen außerdem, Nachfrage und Kapazität über einen Zeitraum von 12–18 Monaten in Einklang zu bringen. Dieser Prozess wird oft als taktischer Kapazitätsausgleich oder grobe Kapazitätsplanung bezeichnet.

Anfang 2017 leitete Michelin eine Reorganisationsstudie ein, in der die Geschäftsstruktur grundlegend überarbeitet wurde. Die Kollaborationsfähigkeit in Blue Yonder S&OP spielte eine wesentliche Rolle, da sie es mehreren Einheiten (wie Fertigung, Regionen und Geschäftsbereiche) ermöglichte, zusammenzuarbeiten, um gemeinsame taktische Verkaufs-, Produktions- und Bestandspläne zu erstellen. Sie war einer der Haupthebel, die einen schnellen Übergang von der alten zur neuen Organisation ermöglichten.

Seit Januar 2018 werden die wichtigsten Aktivitäten von Michelin weltweit mithilfe der S&OP-Funktionen von Blue Yonder und einer entsprechenden Roadmap für die Tool-Implementierung gesteuert. Die Lösung unterstützt einen standardisierten Prozess und ein Netzwerk für den Austausch von Best Practices und gibt den Werken und Vertriebsorganisationen ein neues Werkzeug für die Zusammenarbeit an die Hand. Außerdem ermöglicht sie lokale Simulationen zur Unterstützung der Nachfrageverwaltung in den Regionen sowie des Kapazitätsmanagements in den Werken, wobei alle Daten auf einer einzigen Grundlage beruhen, um Konsistenz zu gewährleisten.

 

Moving to an end-to-end supply chain solution, globally 

Having used Blue Yonder and a number of legacy applications for many years, in 2019 Michelin decided to deploy one set of Blue Yonder solutions across the entire organization (across all business lines in all regions), supported by new standardized business processes. Deploying Blue Yonder technology as its backbone solution became mandatory for each business line to ensure uniform decision-making and faster monthly consolidations.

Since migrating from a regionally based supply chain supported by fragmented legacy systems to the new Blue Yonder-based global solution it has seen significant improvements. Focused solely on fulfilment, Michelin estimates it has saved about 2 days of inventory by improving daily planning. 

“Having used the Blue Yonder applications for many years, we have a huge understanding of their capabilities and all the many options for parameterization. So, we know that in the Blue Yonder solutions, there are a lot of options to help us fine-tune the processes to address each market segment.” 

 

Transportation Management Solution reduces CO2 emissions

Another example of success is around the Blue Yonder transport management system (TMS). Michelin has increased the correct loading of trucks by 2%, resulting in significant logistics cost savings and a reduction in CO2 emissions. 

 

A new segmented supply chain

Around 2024, Michelin recognized its current global supply chain was functioning well but was based on a ‘one size fits all’ design—with the same service offering everywhere for all customers, across all products. This was deemed inadequate to take the company forward in a world where customer demands are changing so quickly. 

“We decided that we needed to adapt. But instead of trying to take the full supply chain design forward, we decided to split this big problem into several smaller problems. We defined our market into product and customer clusters or segments. We defined for each segment of customers a level of service that we wanted to propose.”

Michelin designed the business model around these customer segments, defining the level of ‘cost-to-serve’ and profitability of the different product segments in each case, together with target KPIs for product availability.

 

Relationship built on trust

“The 25-year relationship between Michelin and Blue Yonder is very healthy, and we have a lot of fun, which is important. But what is key for me is that the relationship is based on trust.  When we trust each other, we can be demanding with each other. And this is what we do.  Although we can be very challenging as a customer, between us, we are constantly striving for new levels of success.”

“The next stage of our journey is a move to SaaS, and we will be doing lots of work with Blue Yonder to help us identify and define the business value of this important migration. This is the next key step in our relationship.”

“Our relationship is in a good place, and we have much work ahead of us. But the nice thing to remind ourselves is that in every delivery of Michelin tires that we do every day, we can see there is a touch from Blue Yonder at every stage of our customer delivery.”
 

Hear how Ivan Baturone, Executive Project Manager in the Supply Chain Transformation Program at Michelin describes the essential balance Michelin needs to strike between customer service, logistics costs and reducing inventory.