Reducing Inventory Costs and Optimizing Service Levels

Download the PDF to read the full story - Download

Challenge

A large electronics manufacturer and distributor deliversover a hundred billion units across 140 countries each year.

The company’s global operations team has committed to reducing 20% of inventory by 2021 without impacting service levels. In order to achieve this objective, inventory managers must purchase the right parts at the right times inthe right volumes, requiring an integrated, accurate view ofthe global supply chain.

Prior to engaging C3 AI, the company was struggling to unifyits disparate demand and inventory systems and data sources, forcing inventory managers to reorder parts based on static thresholds driven by historical demand and anecdotal evidence.

Approach

The company selected the C3 AI Inventory Optimization application to address this challenge and engaged C3 AI to begin a phased rollout across its global operations, beginning with the company’s largest distribution center, located in the United States. C3 AI Inventory Optimization enabled the distributor’s purchasing team to unify its siloed and disconnected systems, maintain optimal levels of safety stock, reduce inventory costs, and improve service levels.

About the Global Electronics Distribution Company

  • $10+ billion annual revenue
  • Over 100 billion units shipped per year
  • Over 1 million customers across140 countries
  • 10,000+ employees

Project Highlights

  • 6 months from kick-off to production-ready applicationfor 10,000 in-scope SKUs
  • 5 years and 16 million rows of historical inventory, demand,and supplier data unified
  • User testing executed with 10 inventory managers to deliveran application UI that allows the company’s 100+ inventory managers to take action on inventory reduction recommendations
  • Inventory managers accepted 74% of inventory reduction recommendations during product testing and review

Results

$42M
Working capital reduction
22%
Inventory savings for SKUs in scope
6 months
From kick-off to production ready
10,000 SKUs
Representing $200M in inventory made visible

Solution Architecture

C3 AI Suite

Enterprise AI for Manufacturing

The C3 AI Suite provides the necessary comprehensive capabilities to build enterprise-scale AI applications 25x faster than alternative approaches. The C3 AI Suite enables manufacturers to rapidly integrate petabyte-scale data from any/all enterprise systems, operational sources, sensor networks, and external providers to power machine learning models that generate predictive insights to solve previously unsolvable problems.

Many global manufacturers are already using the C3 AI Suite to drive digital transformation efforts, generating results such as: reducing inventory by as much as 35%, lowering waste due to quality defects by over 20%, and generating hundreds of millions of dollars in economic value annually.

C3 AI Suite

Read the full story

Enter your contact details to receive the full story

* Required

By submitting your information, you agree to our Privacy Policy and Terms and Conditions.

Thank you. We have received your request.
Check your inbox to download the case study.

Proven results in weeks, not years

timeline
Get insights into C3 AI’s capabilities, enterprise AI best practices, and highest-value use cases.
Gain insights into the C3 AI Suite's capabilities, its model-driven architecture, and test it against your company's sample data set.
Identify a high-impact business problem and collaborate with the C3 AI team to rapidly build an AI application that solves it.
Scale and deploy a tested C3 AI application into production. Incorporate user feedback and optimize algorithms to drive maximum economic value.

Want more information?

Contact us