Customer Stories/Machinery Manufacturer
Supply Chain

Machinery manufacturer achieves 39% better lead time predictions with AI

A global manufacturer needed better predictions for delivery times and costs across its supply chain. AI replaced slow manual estimates and turned procurement from reactive to strategic.

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Improvement in supplier lead time prediction accuracy
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Improvement in purchasing cost estimation accuracy
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Improvement in promised delivery time accuracy
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Active suppliers managed

The challenge

The global manufacturer struggled with predicting lead times and costs accurately - less than half of non-stockable items arrived on time and errors multiplied across thousands of suppliers.

Late deliveries, frustrated customers

Less than half of non-stockable items arrived on time. Customers were frustrated, inventories grew unnecessarily and costs spiraled.

Manual estimates didn't scale

Estimating supplier lead times and costs manually was slow and often inaccurate. With over 5,000 active suppliers worldwide, errors were unavoidable - and every wrong estimate showed up as a delay, extra cost or lost order.

AI needed business impact, not experiments

The company knew AI could be the answer - but where to start, which use cases mattered and how to make sure the investment paid off? They needed a partner who understands both business and technology.

What we built

A five-week pre-study mapped the bottlenecks, and within six months we put several AI solutions into production - bridging executive vision and technical delivery.

Diagnosis

Pre-study and use case discovery

In a five-week pre-study we mapped the entire service supply chain: where the biggest bottlenecks sat and where data unlocked smarter solutions. Dozens of opportunities were identified - we picked the most impactful.

Results

A dramatic shift in the supply chain: more accurate predictions, better inventory turnover and procurement moving from reactive to strategic.

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Improvement in supplier lead time accuracy

Fewer rush orders, better inventory turnover and happier customers - the machine learning model predicts real arrival times.

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Purchasing cost accuracy

Manual estimates were off by EUR 820 per item on average. The AI is off by just EUR 45.

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More accurate customer promises

For externally sourced items the improvement reached 23%.

Strategic procurement
From reactive procurement to strategic

Decisions are based on data, not guesswork. Teams can focus on customers and development while AI handles routine predictions.

Beyond the numbers

Over 5,000 active suppliers managed under a single model
AI as part of daily operations - a production solution, not an experiment

Explore related solutions

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Decorative illustration
Machinery manufacturer achieves 39% better lead time predictions with AI