Case Study: Sapphire Textile Mills achieves 38% lower raw material procurement costs with Lumi AI

Textile Manufacturer Reduces Procurement Costs by 38%

Lumi AI partnered with Sapphire Textile Mills, a vertically integrated textile manufacturer, to address a critical procurement challenge. The customer was struggling to manage costs across a vast portfolio of approximately 20,000 raw materials sourced through a complex SAP ERP system. A lack of visibility into price variances for identical materials purchased from different suppliers was resulting in significant missed opportunities for savings.

The solution was implemented using Lumi AI, an advanced analytics platform that integrated with the existing SAP system. Lumi AI analyzed procurement data to identify the top-purchased items and then pinpointed significant price discrepancies between suppliers for the same materials. This enabled Sapphire to consolidate purchases with more cost-effective vendors, resulting in a dramatic 38% reduction in raw material procurement costs and a substantial improvement to their bottom line.

Sapphire Textile Mills

Hissan Q.

Financial Planning & Analysis (FP&A) Manager