Case Study: Process Manufacturer Cleared Duplicates, Saved $21M
How a Top 3 process manufacturer went from duplicate-heavy stocking to streamlined operations, resulting in $21M savings and reduced outage timelines
- Challenge: Overstock, duplication, long outage risk
- Solution: AI flagged 3,000+ duplicate materials and optimized inventory
- Outcome: $21M savings; outages reduced by weeks
3,000+
Duplicate materials identifed
3 days
Reduced outage from 4+ weeks
$21M
Verfied savings accepted
2,200
materials identified at risk of stock out
Our Client
One of the world’s leading process manufacturers had a working capital reduction target of $5M
Key Business Needs
- Optimize production asset strategies
- Revamp outdated stocking policies and min/max levels
- Reduce supply risk and assure supply to support facility reliability (i.e improve OEE), reduce unplanned downtime
- Ensure lowest total cost of ownership for MRO materials supporting manufacturing
Business Challenge
- Poor data quality and management process
- Carried an excess and growing amount of incorrect MRO inventory
- Outdated stocking policies and static lead times
- Significant data discrepancies for MRO inventory across multiple ERP instances
- Team of 5+ resources dedicated to driving inventory strategy
Solution
Verusen’s platform aggregated supply and material data from multiple SAP/EAM systems simultaneously.
Additionally, our client was able to unify supply operations, procurement, finance and IT strategies.
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“Verusen created our intelligent, self-learning materials management solution to transform our future supply network.“
- Top 10 Energy Supply Chain Executive