AI
Published on 11 Jan 2022
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Machinery manufacturer achieves 39% better lead time predictions with AI
Impact
Faster, More Accurate Supply Chain Decisions
The company now uses AI for key supply chain predictions. This leads to better planning, lower costs, and improved delivery performance.
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39%
improvement in supplier lead time prediction accuracy
80%
improvement in purchasing cost estimation accuracy.
13%
improvement in promised delivery time accuracy.
5000+
active suppliers.
Challenge

The global manufacturer struggled with predicting lead times and costs accurately in their teams across the world. Less than half of their non-stockable items arrived on time. Estimating supplier costs and delivery times manually was slow and often inaccurate. This caused delays, increased costs, and unhappy customers.

Solution

We studied the client's supply chain to find the best ways to use AI. We then developed machine learning models to solve their biggest challenges. These tools predict supplier lead times, estimate purchasing costs, and forecast customer delivery dates more accurately. Eventually we connected the company's business needs with the technical AI development.

Result

The AI solutions delivered significant improvements:

  • Supplier lead time predictions are now 39% more accurate
  • Purchasing cost estimates improved by 80%
  • Promised delivery times for key items are 13% more accurate

The company replaced slow manual estimates with faster, data-driven AI predictions. This improved operational efficiency and customer satisfaction.

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