Manufacturing

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

Challenges
The client is a leading Asian manufacturer, who wanted to ensure predictable cash flow by proactively managing supply chain, inventory and customer credit risks across 20K customers and distributors. As steel prices frequently fluctuated, customers would over- or under-stock, causing demand and price variability. Customers may have cashflow problems resulting in delayed payment or default. The client needed to manage the ever-changing demand and unpredictable cashflow of their customers in a highly volatile supply and high input cost environment.
Solutions
ElectrifAi’s solution involved identifying supply chain related risks including material flow risk, cashflow risk, and information flow risk. We then developed descriptive metrics to measure different type of risks and predictive metrics by leveraging ML to identify imminent risk. ElectrifAi delivered near real-time risk monitoring with risk notifications to proactively contain risk.
Outcomes
Predictable cashflow with early credit risk prediction
Sustainable inventory control with stable inventory flow
Maximized cashflow and reduced risk
ElectrifAi’s solution resulted in predictable cashflow with early credit risk prediction and a sustainable inventory control with stable inventory flow from plant to distributor. The client could avoid customers with actual or potential cashflow risks and target the right distributors to maximize cashflow and reduce risk.