Case Study: Lumileds achieves 50% shorter sales and operations planning runtimes and faster deliveries with IBM Decision Optimization Center

Long-term strategy, short-term efficiency

Lumileds Holding B.V., a global leader in LED and specialty lighting serving automotive, mobile and IoT markets, faced growing complexity in planning: thousands of product variants, over 40,000 inventory bins across global sites, and a commitment to confirm production runs within 48 hours. To strengthen long-term strategic planning while keeping just‑in‑time operations, Lumileds turned to IBM, deploying IBM Decision Optimization Center (and continuing to use IBM ILOG CPLEX Optimization Studio) to supplement its planning systems.

IBM implemented a centralized, scenario-driven planning platform that optimizes capacity, resource allocation and inventory across factories; as a result, Lumileds cut runtime to generate weekly and S&OP plans by about 50%, improved delivery-time estimates and shortened delivery timelines through better resource planning, and lowered costs with centralized inventory management and just‑in‑time manufacturing. The IBM solution thus increased planning consistency and reliability while enabling faster, fact‑based decisions.

Lumileds

Kalyana Namburi

Senior Manager, Supply Team Excellence