Introduction

A leading paper manufacturer operates one of the most complex, integrated supply chains in the industry. To enhance forecasting accuracy, optimize inventory, and improve replenishment efficiency, the company partnered with C3 AI to implement an AI-driven planning solution. The initiative aimed to streamline operations, improve decision-making, and deliver measurable business impact across its manufacturing and distribution network.

Challenges

Managing a large network of plants and warehouses required the company to maintain a highly flexible and responsive planning system. However, existing planning tools provided limited real-time visibility into inventory positions, while traditional forecasting methods often produced inaccurate demand forecasts. To compensate, planners made frequent manual adjustments to align stock levels with actual conditions, a time-consuming and effort-intensive process that increased operational complexity and reduced responsiveness.

Solution

The company partnered with C3 AI to enhance supply chain visibility, optimize inventory levels, and enable data-driven planning across its extensive operations. Over an 18-month period, the company deployed two AI-powered applications, C3 AI Demand Planning and C3 AI Inventory Optimization.

C3 AI Demand Planning delivered more accurate, less biased demand forecasts, providing planners with the insights needed to align production and replenishment with real market demand. C3 AI Inventory Optimization then transformed these forecasts into actionable recommendations for safety stock targets and replenishment orders.

Results

The combined C3 AI solution gave the company end-to-end visibility across plants and warehouses and enabled planners to dynamically balance inventory costs, service levels and efficiency. The company lowered manual order insertions by 55%, reduced on-hand inventory by 25%, and improved service levels by 3%. With C3 AI, the company has transformed its supply chain into a more agile, resilient, and efficient supply network able to respond quickly to changing demand and supply conditions.

About the Company

• ~100 years in business
• 150+ global operating locations
• 30,000+ employees

Project Highlights

• 10 data sources unified across three systems into a single integrated planning view
• 8 AI, optimization, and simulation pipelines unified to replace legacy inventory planning tool
• 3 user workflows configured for planners, schedulers, and S&OP managers, enabling pipeline monitoring, parameter optimization, and supply allocation
• 55% manual order insertions reduced
• Inbound lead time accuracy improved by 50% through advanced machine learning–based forecasts
• Improved forecasting accuracy by 6% and reduced bias by 13% in demand forecast