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
39% improvement in supplier lead time prediction accuracy
80% improvement to manual purchasing cost estimates
13% enhancement in customer promised delivery time accuracy for non-stockable items
Transition from manual to AI-driven estimations, enabling more strategic sourcing decisions
Faster and more accurate quote generation, leading to improved customer satisfaction and operational efficiency
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!
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