Utilizing AI for Inventory Optimization
We previously hosted a webinar with Georgia-Pacific to better understand how utilizing Verusen’s AI for inventory optimization ended up being a game changer for their entire organization. Keep reading to learn how Georgia-Pacific was able to solve their multi-million dollar problem in less than 12 weeks!
About Georgia Pacific:
Georgia-Pacific is an American pulp and paper company based in Atlanta, Georgia, and is one of the world’s largest manufacturers and distributors of tissue, pulp, paper, toilet and paper towel dispensers, packaging, building products and related chemicals. As of today, Georgia-Pacific has over 120 plants and divisions across North America.
As a large company, Georgia-Pacific has a variety of ERP systems across 120+ plants in the United States. Their MRO costs alone equate to hundreds of millions of dollars annually. This was a huge pain point for GP as they continued to discover much of their working capital was tied up in MRO, and the purchasing of unnecessary new parts every year cost the company millions of dollars.
These parts unfortunately were not always the right nor the most up to date parts that they needed. This resulted in the company having to write off tens of millions of dollars every year. When Georgia Pacific took a deep dive into the problem, they discovered a majority of it stemmed from “old school ways” that the management team had used their entire careers along with lack of accurate data due to the disparate systems and processes.
Georgia Pacific decided it was time to take a new approach and teamed up with Verusen to conduct a 90 day trial.
Georgia-Pacific had three key objectives and worked with Verusen in hopes that a POC and MVP would be easily identified in under 90 days.
Georgia-Pacific pleased, as Verusen was able to deliver results and verify tens of millions of dollars in inventory optimization and material duplicate opportunities in less than 90 days.
After Georgia Pacific recognized the value Verusen was able to provide, they began to explore how they could utilize data across other areas within Georgia Pacific. It was evident that the data Verusen was able to provide led to better decision making that unlocked working capital, while not increasing the risk of their assets.
Georgia Pacific has emphasized the key role Verusen has played in implementing a new approach to inventory management and will continue to work together to identify new opportunities.