Food & Beverages

Freight cost reductions of up to 14% by analyzing demand patterns and recommending new distribution centers

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Challenges

The client’s supply chain network setting was very complex with 30+ distribution centers and 10,000+ store locations. Its suppliers had to negotiate a complex network of routes to reach their destination, making it difficult to gain efficiency and mitigate rising freight costs without the help of Machine Learning.

Solutions

ElectrifAi’s supply chain optimization product recommended the best routes with the right SKUs for the assigned shipment destinations. The product introduced new modes (optimal-sized logistic centers) to the existing supply chain to rebalance the network and reduce costs when the demand was high, and the shipping distance was long.

Outcomes

7.73%
reduction in freight costs by analyzing demand patterns
13.58%
additional reduction in freight costs by recommending new distribution centers
Optimize overall supply chain network routes, reduce transit times, and minimize delivery costs

Food & Beverages

Achieved an average 40% Safety Stock reduction without disrupting business operations

Manufacturing

Reduced supply chain and credit risks across 20K customers with machine learning

Transportation

Leading regional airline boosts revenue, cuts cost improves business decision making with ML-powered cargo and route optimization strategies