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CIRCLE K FUELS A BETTER FORECAST

Global convenience store chain drives an accurate global forecast with Connected
Planning.

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CIRCLE K ACHIEVES A MORE ACCURATE FORECAST TO BETTER PREDICT THE RIGHT STOCK
LEVELS

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Circle K operates a network of over 12,000 convenience stations around the
world. Because they were managed using a conglomeration of spreadsheets and ERP
solutions, demand and supply forecasting were misaligned and sometimes
inaccurate. “People were doing forecasting in silos,” recalls Magnus Tagtstrom,
Senior Director of Supply Chain Optimization. With Anaplan, Circle K now has
greater collaboration and an accurate, aligned 18-month rolling forecast.

--------------------------------------------------------------------------------

> One of the clear benefits that I see is the forecast accuracy—this has helped
> us have the right stock level throughout all our sites.




100%

visibility into current inventory




18 MONTH

rolling demand and supply forecast

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 * SOLUTIONS
   
   Supply Chain

 * INDUSTRIES
   
   Retail

 * PARTNER

Before Anaplan, Circle K managed its supply and demand planning in a disjointed
combination of spreadsheets and enterprise resource planning (ERP) systems. This
led to inaccurate forecasting, an unstructured approach to information
gathering, and conflicting demand forecasts.

“One of my objectives has been to try to connect the dots in the supply chain,”
recalls Magnus Tagtstrom, Senior Director of Supply Chain Optimization. “I think
we had good solutions, but people were doing forecasting in silos, so I wanted
to connect that planning process end to end.”

Tagtstrom and his team built a connected approach to demand and supply planning
with Anaplan for Supply Chain. Implemented together with Anaplan partner
Executit (now part of Anaplan Gold Partner Vuealta), the solution enables the
team to accurately predict supply and demand down to the individual-station
level across Europe. Using intuitive forecasting and scenario-based planning,
the planning teams at Circle K now have a dynamic capacity forecast per product
and station so they know exactly where and when to send fuel.

The key result is an accurate and dynamic 18-month rolling forecast of current
and future stock levels for its European locations. Tagtstrom says, “One of the
clear benefits that I see is the forecast accuracy—this has helped us have the
right stock level throughout all our sites. That’s money that we have as a
buffer in the supply chain now.”

With an accurate view of capacity needs, Circle K can save money by reducing
inventory and using resources more efficiently. “We have full visibility of our
current inventory levels, as well as forward-looking inventory levels,”
Tagtstrom explains. “With Anaplan, we know how much we will sell and when we can
distribute it to sites. This has resulted in driving down both distribution
costs and working capital.”

Another benefit is increased sales, because an accurate forecast means Circle K
has fewer stock-outs. “If there is ever a time when our store has no fuel, the
customer might not shop with us the next time,” Tagtstrom explains. “So it’s
very important to us to anticipate demand.” Circle K also realizes intangible
benefits: confidence (because everyone is working from the same plan and data),
less stress, more collaboration, and the ability to make better-informed
decisions.

Circle K chose the Anaplan platform for its ability to get up and running
quickly with an iterative development process. Other important factors were the
platform’s scalability and intuitiveness, which led to high end-user acceptance.
The road ahead includes broader usage, more data sources (such as weather data),
machine learning integration, and partner views.


CHEVRON-DOWNCREATED WITH SKETCH. VIDEO TRANSCRIPT

I’m Magnus Tagtstrom, and I lead supply chain optimisation in Circle K. We have
four to five products and around 2,500 sites. One of my objectives has been to
try to connect the dots in the supply chain. I think we had good solutions, but
people were doing forecasting in silos, so I wanted to connect that planning end
to end. I looked into other point-specific solutions—the requirements from my
side was that we need something flexible and we need something quick. Then I
came across Anaplan, which for me is like a … I don’t know, I think people use
the words “Excel on steroids.”

The approach that we’ve taken to the entire implementation is: I would like a
solution that we can maintain in-house. We’ve trained model builders in my team
to develop this in the future. But we were not used to Anaplan, and we were not
used to quick development—and we were not really used to what you could do with
it. So therefore we chose Executit, which is a local partner here in the
Nordics. They’re quick in the development, and they can challenge me. So the
solution that we built is replicating a lot of Excel’s, replicating a lot of ERP
functionalities. But the nice thing is that we created a connector to the ERP
systems, so we get daily updates on volumes and daily updates on sales across
the entire field supply chain automatically integrated to the model.

Biodiesel is a big thing in the Nordics. We would like to sell as much as we
can, but we have a shortage of it, so we need to allocate it to where our
customers need it the most. So taking the Anaplan solution that we have now, it
actually automatically had an impact; e.g., what products do we need to supply
into our terminals? So I think, for me, that was the kind of, “Okay, when you
put the plans in the same place, when you put the known things and when you do
allocations, it automatically has an impact on the people doing the shipping
plans.”

Some of the clear benefits that I see is the forecast accuracy—being specific in
forecasting and then also having the BU inputs to plans into that—I think that
will help us to have the right stock level throughout all our sites. That’s
money that we have as a buffer in the supply chain now.

So when let’s say we buy a product that we got from the Anaplan solution, we
have full visibility of our inventory levels and the inventory levels, as well
as forward-looking inventory levels, because we know how much we will sell from
our demand plans and we know when we can distribute it to sites. This makes us
much more specific in being able to drive down both distribution costs and
working capital. So what we utilized is taking analytics, in our case power BI
on top of Anaplan, to be able to create a much better report to get the
insights. With Anaplan, I think we have taken this low-tech industry into
something more high tech, and we’re ready for the future.



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RESOURCES

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2024 Gartner® Magic Quadrant™ For Supply Chain Planning Solutions