Case Studies

Forecast Accuracy Optimization Through Blue Yonder Implementation

3 minute read

EXECUTIVE SUMMARY: A private label food manufacturer implemented Blue Yonder to replace SAP APO and improve statistical forecasting accuracy. Catena Solutions deployed a Forecast Data Scientist to assess system gaps, tune Blue Yonder configuration, and train the Demand Planning team. The result was a measurable increase in forecast accuracy and significant cost savings compared to the legacy third-party AI provider.

The Challenge: Bridging Gaps During APS Transition

The manufacturer selected Blue Yonder as its new Advanced Planning and Scheduling (APS) tool to take advantage of modern forecasting capabilities and reduce reliance on an external AI provider previously required alongside SAP APO.

During the transition, the Demand Planning team encountered several obstacles:

• Limited experience tuning Blue Yonder algorithms
• Gaps in understanding reconciliation and system behavior
• Difficulty accurately forecasting seasonal demand patterns

These issues created inconsistencies across categories and prevented the team from fully leveraging the tool’s capabilities.

The Solution: Expertise to Optimize Blue Yonder

Catena Solutions brought in an experienced Forecast Data Scientist to diagnose implementation gaps, streamline processes, and improve system performance.

Key issues identified in initial discovery:

• Gaps between the product transition histories of old SKUs and new SKUs.
• Several issues with New Product Introduction (NPI) processes and system functionality to handle all Demand Forecasting Unit (DFU) scenarios. Specifically, there were multiple sources involved in de-commissioning old items and introducing new items, and there needed to be one true source.
• A gap with the Blue Yonder configuration and the Demand Planners’ utilization of the tool as it related to automations.

Actions taken to resolve challenges:

• Evaluated the needs of the organization to align their business requirements for Blue Yonder
• Identified the root cause of the automation issue and drove the correct configuration of batch processes and the associated missing performance metrics
• Fine tuned the test environment for one of the client’s key categories
• Evaluated the baseline performance of Blue Yonder verses the third-party AI provider, enabling the ability to tune all categories on baseline compared to the AI provider
• Performed back testing to compare and evaluate forecast performance
• Created a Python script to evaluate performance metrics of Blue Yonder forecasts and the AI provider with actual sales which was necessary due to the lack of performance-related dashboards, as the Supply side wasn’t yet live
• Created a history cleaning training document and NPI process training and delivered training sessions to the Demand Planning team
• Ran demand classification/auto-tune for all categories
• Identified seasonality configuration issues and recommended a fix to enhance the statistical forecasting results
• Identified multiple issues related to the demand workbench and made recommendations for corrections

Unique implementation issues overcame:

The consultant resolved several complex barriers throughout the project, including:

• System data quality issues that required root cause analysis and targeted recommendations
• Design inconsistencies caused by inaccurate testing and limited internal functional knowledge
• Reconciliation gaps that required clear process definition and correction

The consultant’s strong Data Science background and previous Blue Yonder experience, including developing automated ML pipelines and proof-of-concept forecasting models, were essential to achieving these results.

“It’s been an absolute pleasure to work with the Catena Solutions consultant. They are an incredibly talented individual. Thank you for bridging such a wonderful connection for our team.”

The Benefit: Improved Accuracy, Lower Costs & Stronger Forecasting

The engagement delivered meaningful improvements, including:

Ready to improve your forecasting performance? Contact Catena Solutions to learn how our experts can support your next planning transformation.