Case Study: a high-tech manufacturer achieves 15% labor cost savings and 25% inventory cost savings with Pecan AI

High-Tech Manufacturer cuts inventory costs 25% with Pecan

The customer, a tier II supplier for some of the world's largest manufacturers, faced a significant challenge due to its legacy, non-scientific forecasting methods. This led to a demand and supply mismatch, causing understock and overstock of subcomponents, extended lead times, and wasted labor costs. To address this, the company turned to vendor Pecan and its AI-powered predictive analytics platform for a demand forecasting solution.

Pecan implemented its platform, automatically connecting and unifying data from the customer's CRM, ERP, and other sources to create a fully-trained demand forecast model in under 14 days. The solution provided highly accurate forecasts, achieving 75-85% accuracy. This resulted in a 15% labor cost savings and a 25% inventory cost savings for the customer, while also reducing machine changeover time by 20% and increasing sales through better product availability.

High-Tech Manufacturer