Context & Need
In industries like cable manufacturing, efficient inventory management is critical to balancing production continuity with cost control. Poor forecasting often leads to either stockouts, halting production, or excessive raw material storage that inflates costs and wastes resources.
Our client, a leading cable manufacturer in Italy, needed a more intelligent way to manage stock levels and raw material procurement. The goal was to optimize stock availability without over-ordering, while keeping up with volatile trends in the market prices of raw materials.
The Solution
Innovatech developed a custom AI-driven business analysis platform designed specifically for predictive inventory management.
The platform integrates:
- Forecast data from planned production and orders
- Internal operational and logistics variables
- External market trends and commodity pricing
Using advanced machine learning algorithms, the system generates procurement strategy recommendations aligned with short and long-term production goals. These recommendations help the company strike the right balance between cost efficiency and material availability.
Key Features
- AI-powered forecasting of stock needs
- Dynamic procurement strategy simulation
- Real-time dashboard with material usage insights
- Integration with ERP and production planning tools
- Predictive alerts for under/overstocking risks
Results & Measurable Impact
Since implementing the solution, the company has reported:
- Reduction of waste by 22%, due to more accurate stock planning
- Improved procurement efficiency, aligning orders with actual needs
- Better cost control, thanks to predictive insights on raw material trends
- Increased productivity, with fewer delays due to material unavailability
- More sustainable inventory cycles, reducing overproduction and storage space requirements
Strategic Impact
This use case demonstrates how artificial intelligence can modernize traditional supply chain processes. With real-time data, predictive algorithms, and seamless integration, our platform helps manufacturers not only reduce costs but also enhance agility and long-term planning across procurement and production departments.
