100% automated process through cognitive technology

Savings of €200,000

The client is a global conglomerate dealing with the manufacturing, marketing, and distribution of consumer goods in segments like Food and Beverages, Home Care, Beauty Products, etc.

They were facing a challenge due to manual efforts in reviewing the Norms and integration with the planning system, which happens once in 2 months with the existing process and finding the right safety stock levels due to varying demand positions.

They were looking for a solution that would recommend current safety and target norms from either increasing or decreasing to optimize safety stock levels to get the right balance between required assets and service levels.

The solution takes the approach of implementing cognitive technology to propose norm days/ stock on a weekly basis. This approach evaluates multiple supply chain KPI’s and calculates the weightage of each KPI to derive the Norms, which results in a recommendation matrix of business-driven norms to propose the percentage of increase/decrease in Norm based on KPI values.

This automates the process of generating the proposed norm changes by identifying the safety stock level improvement with Impact Analysis. It also updates the accepted norm changes to the execution system automatically through write-back.

The team was able to achieve an automated process for reviewing and updating the norm changes, which improved the process efficiencies and resulted in qualitative benefits. Accurate safety stock level recommendations generated 200k Euro savings, with the solution using the latest supply/ demand situations for reviewing norms weekly.

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