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Case Study: Streamlining Operations for a European Beverage Manufacturer


Case Study: Streamlining Operations for a Leading European Beverage Manufacturer

Challenge

The beverage manufacturer, a market leader in Europe, faced challenges managing its inventory and warehouse operations due to unpredictable demand patterns. The complex supply chain combined with seasonality made it challenging to forecast accurately. This often led to overstocking and stockouts, tying up capital, and causing lost sales opportunities. Additionally, unanticipated machine downtimes further disrupted their production schedule and increased costs.


Solution

Sumo Analytics deployed our Auto ML solution to help the beverage manufacturer optimize its operations. We customized a superior demand forecasting model using the manufacturer's historical data and relevant external variables like seasonal trends and market dynamics. This accurate forecasting tool enabled the manufacturer to align its production plans precisely and optimize procurement, reducing waste and ensuring timely production.


Our predictive warehouse replenishment solution used these precise demand forecasts to inform when and where warehouses would require replenishment. This not only reduced safety stock levels but also prevented stockouts, resulting in more efficient warehouse operations.


Furthermore, our AI-driven predictive maintenance solution was introduced to anticipate potential machine breakdowns. This allowed maintenance to be performed proactively before machine failure could impact production.


Outcome

After implementing Sumo Analytics' solutions, the beverage manufacturer saw transformative results. Our AI-driven forecast technology brought about a whopping 43% improvement in demand forecast accuracy, which translated to a precise alignment of production and demand. Stockouts, a recurrent issue earlier, were completely eliminated, significantly boosting customer satisfaction and sales opportunities. The sharp accuracy in forecasting also played a pivotal role in optimizing inventory, freeing up a staggering EUR 1 million per month previously tied up in surplus stock. Additionally, the adoption of predictive maintenance decreased unplanned machine downtimes by 30%, enhancing overall operational efficiency. Collectively, these changes reinforced the manufacturer's competitiveness in the market and paved the way for increased profitability.





 



Sumo Analytics is a data science and AI laboratory, specializing in the realm of prediction science. We build and deploy advanced AI systems that elegantly marry human intelligence with the computational power of artificial intelligence, enabling our clients to achieve unparalleled performance.

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