Chemical Giant Saves $250,000 in 2 Months: AI-Powered Supply Chain Analytics Slashes Analysis Time from 9 Months to Weeks

A leading chemical manufacturing company, faced challenges in optimising their supply chain due to inadequate digital infrastructure. Their reliance on Excel spreadsheets hindered multi-dimensional analysis and restricted optimisation projects to senior procurement teams.

Challenge

  1. Lack of digital infrastructure for comprehensive supply chain analysis
  2. Limited optimization capabilities due to inadequate systems and data accessibility
  3. Inefficient processes restricting analysis to senior procurement teams only

Our Approach

We proposed a pilot project to demonstrate the potential of a comprehensive digital transformation:

Data Standardization and Integration:

  • Connected and standardised internal data from Excel and ERP systems
  • Created a custom interface for advanced analytics

Advanced Analytics Implementation:

  • Conducted spend analysis across 40,000+ SKUs
  • Developed geo-location route calculations between suppliers and customers
  • Created visual supply chain maps connecting suppliers, products, and customers
  • Built intelligent chemical formulation comparison tool for 40,000+ SKUs

User-Friendly Interface:

  • Designed an accessible platform for all departments and seniority levels

Pilot Results

In a focused two-month pilot with one strategic supplier:

  • Identified $250,000 in cost savings through rapid reallocation
  • Reduced analysis time from 6-9 months to just weeks
  • Provided instant access to comprehensive supply chain data

Projected Benefits

Based on the pilot results, the client’s team estimated the following potential outcomes if fully implemented:

  • Potential to increase annual saving by 4x
  • Mitigate sole sourcing risks across 2,000+ suppliers
  • Identify alternative suppliers with closer proximity to demand, potentially reducing shipping costs and time
  • Enable full visibility across all departments and seniority levels
  • Increase efficiency with instant, on-the-fly analysis for large spend assessments

$250,000

Cost savings

6 Months +

Team time saved

4x

Potential annual savings

Client Feedback

Very enthusiastic feedback about the potential of the system, noting that it could eliminate the need to consult multiple departments for information, providing instant answers to complex queries.

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