ArvatoSystems_Hoermann_Stage

AI-supported forecasting tool optimizes material requirements forecast at Hörmann

Efficient material planning through automated forecasts

Hörmann benefits from an innovative forecasting tool to increase efficiency

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As part of the project with Hörmann, a medium-sized family business and Europe's leading supplier of doors and gates, Arvato Systems has developed an automated and AI-supported forecasting tool. This tool aims to optimize the material requirements forecast for the product division "garage doors". Given the challenges posed by manual forecasting methods, which take up a lot of time, the solution creates transparency and efficiency in the forecasting process.

In addition, the tool reduces the manual effort required to create forecasts to a minimum, thus relieving Hörmann's employees. This innovative approach not only increases efficiency, but also strengthens Hörmann's long-term competitiveness by enabling the company to respond better to market developments.

Customer benefits

Improved decision-making through precise forecasts
Increased transparency in the forecasting process
Better adaptability to market changes
Risk minimization through early bottleneck identification
Optimized resource allocation and cost savings
Long-term planning security for strategic alignment
Belly, Anita

With the AI-based solution, we are not only significantly increasing efficiency, but also strengthening our competitiveness in the long term by being able to react more flexibly to market developments in our production.

Hörmann

Project overview

Initial situation

Hörmann was faced with the challenge of accurately forecasting the material requirements for the production of garage doors. Previously, the forecast was created manually by production managers, which required a considerable amount of time of around 1.5 weeks per forecast. In addition, the knowledge required to interpret the data was limited to a few employees who were about to retire. This dependence on the expertise of individual employees and the manual process led to inefficiencies and an increased risk of bottlenecks in material procurement.

Vision

The project provides Hörmann with a powerful forecasting tool that significantly improves transparency and efficiency in material requirements forecasting. This tool clearly and comprehensibly documents which materials will be required in the coming months. In addition, the employees' expertise in creating forecasts is saved in the system in order to retain valuable know-how within the company in the long term. The precise forecasts prevent bottlenecks in material procurement and overproduction, which leads to an optimized cost structure in the production plant. This vision has been successfully implemented and strengthens Hörmann's competitiveness in the long term. Building on the successes to date, the project will be gradually expanded and rolled out.

Solution

Arvato Systems developed the complete architecture of the AI-supported forecasting tool for Hörmann and the integration into SAP adopted. The solution is based on Microsoft Azure and uses various Azure services to maximize the efficiency and accuracy of the forecasts. Hörmann's production data is provided and calculated with relevant external data in the model. A blob storage (for storing large amounts of unstructured data) enables the exchange of all relevant data, while Azure Functions perform serverless calculations of the forecasts. In addition, an Azure Machine Learning instance is used to develop and train the model. Processed data and interim results are stored in a No-SQL database, which ensures complete monitoring of the forecasts.

Maximum efficiency and support for Hörmann

The implementation of the AI-powered forecasting tool not only provides Hörmann with improved forecasting accuracy, but also a number of additional benefits that further optimize efficiency and operations:

  • Cloud infrastructure: The solution is based on Microsoft Azure, which ensures high availability, scalability and security.
  • Data management: Azure Blob Storage is used to store large amounts of data required for the machine learning model.
  • Modularity: The system has a modular structure, which means that the trained model can easily be exchanged for other models or algorithms.
  • Technical support: Arvato Systems provides technical support and maintenance services to ensure the smooth operation of the solution.
  • Training programs: Training courses and workshops are offered to train the Hörmann team in the use of the solution and the underlying technologies.

Hörmann - A family business

Europe's leading supplier of gates and doors

 

More than 20 million doors have been produced and delivered worldwide since the company was founded in 1935. In over 40 specialized plants in Europe, North America and Asia, more than 6,000 employees develop and produce high-quality gates, doors, frames, operators, access control and storage systems for use in private and commercial properties. The headquarters of the globally active Hörmann Group is located in the East Westphalian town of Steinhagen near Bielefeld, Germany. The family-run company recently achieved an annual turnover of more than 1 billion euros.

 

Today, the Hörmann Group is managed in the fourth generation by the great-grandsons of company founder August Hörmann. The personally liable partners are Martin J. Hörmann and Christoph Hörmann.

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Achim Reupert
Expert for the Manufacturing Industry