Case Study: Tata iQ optimizes steel logistics and cuts costs with AIMMS

Tata iQ reduces logistics and inventory costs by 1-2% with AIMMS

Tata iQ, a division of Tata Industries, was engaged by a large steel manufacturer to address a complex logistics challenge. The manufacturer needed to optimize its inbound logistics of raw materials from global ports and its outbound distribution of finished goods across India, aiming to reduce costs while meeting strict customer service levels and navigating capacity constraints. They chose AIMMS to develop a suite of tailored optimization models for this purpose.

Using the AIMMS platform, Tata iQ developed and deployed a suite of optimization applications for logistics, inventory, and consumption planning. These AIMMS-based apps provided detailed transport schedules and optimized network designs, which resulted in a 1-2% reduction in logistics and inventory costs, maintained high service levels, and significantly reduced planning time. The solutions also provided crucial flexibility, allowing the company to effectively model and adapt to disruptions during the COVID-19 pandemic.

Tata iQ