Case Study: Michelin achieves a 5% global profit margin increase with Cosmo Tech AI-Simulation Technology

How Michelin Uses AI-Simulation Technology to Optimize Its Global Profit Margin by 5%

Michelin, the global tire and mobility products manufacturer, needed a better way to optimize strategic sourcing across a complex worldwide network of plants, markets, product models, logistics, and CO2 constraints. The company turned to Cosmo Tech and its Prescriptive Simulation Twins to evaluate future scenarios before making major capacity and sourcing decisions.

Using Cosmo Tech’s AI-Simulation Technology, Michelin ran more than 80,000 simulations with over 3,000 dynamic decision variables to identify the best five-year sourcing strategy. The solution helped reduce annual logistics costs by €10 million, improve global profit margin by more than 5%, and cut transport and customs costs by over 60%.

Michelin

Thibaut d’Hérouville

VP Group Industrial Supply Chain