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Global Electronic Instrument Manufacturer Reduces Inventory by 15% Using AI-Powered Solution - LeanDNA Industrial IoT Case Study
Global Electronic Instrument Manufacturer Reduces Inventory by 15% Using AI-Powered Solution
In 2019, a global leader in electronic instrument manufacturing aimed to improve their organizational shortage communication and achieve ambitious inventory reduction goals. The company's demand varied from item to item, which complicated their inventory purchasing process and affected supply to the manufacturing floor. This put factories at risk of production-halting critical shortages. The management of this complexity was challenged by an unwieldy ERP system and a lack of total visibility into operations. Establishing optimal order policies for inventory management was possible in the ERP, but it required manual ABC analyses, a cumbersome process that took three to six months. The team viewed these analyses at a quarterly cadence, arguably too infrequently to react to market demand. Metrics around action items, time management, usage, and average demand were not available to the team in their ERP system.
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