C3.ai
7 Case Studies
Case Study: Fortune 200 Manufacturing Company Achieves Up to 35% Inventory Reduction with C3.ai Inventory Optimization
A C3.ai Case Study
Optimize Inventory Levels for a $30B Global Discrete Manufacturer
Fortune 200 Manufacturing Company, a $30B North American discrete manufacturer with hundreds of factories and more than $46B in inventory, needed a better way to reduce purchased-parts inventory for complex industrial equipment. Existing inventory optimization tools could not dynamically optimize individual parts at scale while accounting for uncertainty in demand, supplier lead times, quality issues, and production disruptions. The company turned to C3.ai and its C3.ai Inventory Optimization application on AWS to address the challenge.
C3.ai implemented a trial for one product line at one factory, integrating production orders, BOMs, material movement, lead times, and other operational data into a unified model. Using machine learning and stochastic optimization, C3.ai helped the manufacturer recreate historical inventory levels and dynamically optimize part-level inventory settings, delivering 28%–52% savings in inventory holding costs and an estimated $100M–$200M in annual economic value. The project was completed in 12 weeks and reduced inventory levels by as much as 35%.
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