Danfoss engineers its heating, cooling, power, and other solutions for extreme efficiency. “Across the broad span of products we have, we basically save energy, so we have a positive impact on CO2 emissions,” says Kristoffer Halle, SIOP Architect at Danfoss, a multibillion-dollar international industrial manufacturer headquartered in Denmark. Indeed, Danfoss is leading the world’s green transition.
Efficient processes help build efficient products
Halle and his fellow supply chain leaders and planners at Danfoss are charged with making the company’s operations efficient — like the products Danfoss makes — but outdated planning technology and processes sometimes got in the way. In 2018, Danfoss began using the Anaplan platform for Sales, Inventory, and Operational Planning (SIOP). The SIOP solution has been game-changing for the planners at Danfoss who use it. For example, rather than compiling and updating all data when reviewing a project, the new system is exception-based; unchanged data flows through automatically, and planners can apply their time and intellect where it adds value.
“With Anaplan, we succeeded to make a setup with very, very rich functionality,” he says. “They can spend time where they know some special insight. That has been a great success for us.” The SIOP platform has become even more comprehensive and automated since its launch.
Fast move into production
In 2021, a different team within Danfoss was addressing supply chain challenges related to global business conditions. “We were dealing with extended lead times on raw materials,” recalls Magnus Hoffritz, OneERP Consultant and UX Lead Developer at Danfoss. “Although we could increase our [manufacturing] capacity, we just weren’t able because we couldn’t get materials fast enough.”
Lack of consistent and timely data compounded the challenge. “We had a lot of spreadsheets, all on SharePoint sites,” Hoffritz says. “We were really struggling how to update them.” He knew his team could address the challenge with an Anaplan-based allocation solution, and he was determined to move fast. “After we captured all the user stories, we did something very fast as a minimum viable product,” he says of his team. “We actually were able to build a final product that we went live with after just three sprints.”
Hoffritz’ allocation solution delivered immediate value to its users. With the old system, planners spent hours updating dozens of spreadsheets weekly. Now the work is done in 15 minutes a week, with complete traceability and transparency. “They log in one place and they see everything at once,” Hoffritz says.
Extraordinary flexibility
Halle says that the multiple ways that teams at Danfoss use Anaplan illustrate the platform’s unique value proposition. “The big strength of Anaplan is this extraordinary flexibility, that you can do anything you want,” he explains. “So basically, the sky is the limit.”
