Machinery Manufacturer Enhances Supply Chain Performance: 39% Better Lead Time Predictions With AI

Client Overview

A global industrial machinery company seeking to enhance their service business SCM operations through AI and data-driven solutions.

Industry

Industrial Machinery

Business Processes

Procurement, Sales, Warehousing, Logistics, Order to Delivery

Problem

The client faced challenges in lead time predictions, high purchasing costs, inconsistent delivery performance, and manual quotation processes. Less than 50% of non-stockable items were delivered on time, resulting in customer dissatisfaction and increased holding costs. 

Manual estimation of supplier and transportation lead times created bottlenecks, reducing operational efficiency and leading to inaccurate predictions. The existing process for estimating supplier purchasing costs was also manual, leading to inaccuracies and lost opportunities for cost savings. 

The client needed guidance in identifying and implementing impactful AI opportunities to transform their supply chain management.

Solution

We conducted a comprehensive five-week prestudy followed by targeted implementation of AI solutions across key supply chain processes.

Create Strategic Vision

Developed a concept for a Supply Chain Performance Hub, a digital twin enabling seamless visibility throughout the entire supply chain.

Identify AI Opportunities

Evaluated and prioritized high-potential AI use cases across procurement, logistics, and sales.

Implement AI Use Cases

Oversaw the execution of five key AI use cases over six months.

Bridge Business and Technical Teams

Served as a liaison between executives and AI scientists, translating business needs and technical requirements.

Some AI use cases implemented

Supplier Lead Time Prediction

Uses machine learning to accurately forecast supplier lead times, reducing delays and improving overall supply chain efficiency.

Purchasing Cost Estimation

Leverages historical data to predict supplier purchase prices, enabling better supplier negotiations and strategic sourcing decisions.

Promised Delivery Time Accuracy

Combines multiple data sources to predict delivery dates more precisely, enhancing customer satisfaction and reducing shipping disruptions.

Results

Ready to revolutionize your supply chain management?

Let’s harness the power of AI to optimize your operations, enhance visibility, and drive growth across your supply chain!

Back To Top
Theme Mode