Enterprise AI for Major Industrial Manufacturer
About the Customer
This Flivo AI customer is a multinational industrial manufacturer that supplies equipment, products, technology, and services. As of 2022,
- $30 billion annual revenue
- 70,000+ employees globally
- Conducts business in 100+ countries
Challenges
They wanted to majorly upgrade their sourcing operations. They faced challenges in:
- Obtaining clear insights into their supplier network due to not analyzing data at the correct level
- Evaluating supplier data due to a lack of visibility, restricted by inability to scale their software.
- Swiftly adapting to changes and total shifts within their supply chain.
Project Objectives
- Create an Enterprise AI tool for the major industrial manufacturer.
- Establish permanent automated workflows within the centralized platform with a proper repository.
- Build future capacity for cost-saving measures.
Approach
- Consolidate data from various sources into a centralized repository for comprehensive visibility into sourcing activities.
- Implement algorithms to identify pricing irregularities and potential cost-saving opportunities across different sourcing channels.
- Automate spend analysis by supplier, contract type, and other relevant parameters to streamline expenditure management.
- Develop automated workflows to assess and mitigate potential risks associated with suppliers.
- Deliver actionable sourcing insights and analytics to managers through a user-friendly interface accessible on desktops and mobile devices.
Project Highlights
- 12 weeks (about 3 months) from kickoff to application production
- Small, agile team of app developers and data engineers
- 7 global sites for initial implementation
- 80,000 suppliers
- 3 million item details monitored and analyzed
- Data from 10 different systems like common ERPs, etc.
Benefits
- Lower cost sourcing decisions
- Increase efficiency
- Minimize supply chain risks by monitoring sourcing activities
- Utilize AI and advanced ML (AML) capabilities
Results
15-20%
reduction opportunity across sourcing costs
$20–25M
savings opportunity from reduced open spend
300+
global facilities following production scale out
