Real-World Examples Of Supply Chain Automation Success

Back in 2018, we had a big problem at Tesla. We needed to scale Model 3 production from 20k to 100k cars per quarter. But the existing supply chain systems simply couldn’t handle this growth. With only a month of cash left, we had to keep the cars moving. We were far too dependent on spreadsheets for planning. They couldn’t keep up with the business and it was having a serious negative impact. Neal Suidan and Michael Rossiter, both leading global demand planning, created something remarkable out of necessity: a unit-level planning system that could simulate and track individual cars through the entire supply chain and match them to demand. This reduced Tesla's inventory from 75 days to just 15, unlocking billions of dollars in working capital at a time when every dollar mattered. Fast forward 7 years and it occurred to us that thousands of companies can use this. They are now bringing that framework to customers with Atomic. Most planning software requires costly integrations and months of setup. Atomic uses AI to eliminate the dreaded spreadsheets, and gets clients onboarded in an hour. The results speak for themselves: - 20-50% reduction in inventory costs while improving in-stock rates - 40+ hours saved per week for planning teams - 3.5x increase in inventory turnover, freeing up millions in cash Today, they announced $3M in seed funding to bring this capability to companies still trapped in supply chain spreadsheet hell. Can’t wait to see what Atomic accomplishes next. https://lnkd.in/e4HrHgqB

This #WorkLab article showcases an inspiring example of Microsoft #Copilot in action. Dow partnered with Microsoft to transform its freight invoicing system, uncovering millions in potential savings.    With billions spent annually on shipping, small errors like surcharges and duplicate invoices added up quickly. By leveraging #AI agents powered by Copilot, Dow automated the review of 4,000 daily invoices, flagging anomalies and streamlining global operations. In just weeks, the pilot identified significant savings, and once fully deployed, Dow anticipates reducing freight costs by up to 3%.    By grounding AI in data, Dow is not only cutting costs but also building a foundation for automation across logistics and customer service—showcasing the transformative power of AI in action.

I just got off a call with a food manufacturer in Europe who was sharing how their planning transformed completely in a very positive way, with plans being executed in certain cases in a 98% touchless manner, an year after going live on RELEX. Three things stood out for me in this conversation: 1. The lives of the planners changed for better. Instead of focusing on the routine, mind numbing tasks of manually tweaking forecasts day in and day out in the legacy planning system, now they are focusing on touching plans on an exception basis so they can better spend their time actually managing the business than planning for the sake of planning. It was not just a tech deployment. It enriched the lives of these planners. 2. They approached this not just as a tech deployment, but as "an opportunity to get smarter in business". With more accurate planning and a reimagined process. Thanks to their efforts, given the short shelf life (2 to 3 weeks in most cases) of the products they sell, they were able to significantly improve shelf life and reduced markdowns as the stock approaches expiry. In the process they are reducing food waste and making the world a better place. This reminded me that supply chain is not just an enabler for business. Supply chain IS Business! 3. They never looked at RELEX as simply as a vendor. Instead, we collaborate as equal partners vested in mutual success. In their own words, "RELEX has brought with it not just the technology but a very well thought out process that looked at the deployment holistically". This made my day! As I reflect on the conversation, the momentum we have seen in 2024 was simply a byproduct of embracing the RELEX core value of "Customer is a Friend". Afterall, businesses are built by humans and between humans. Technology is an enabler. More examples of such success in this press release: https://lnkd.in/ex4adCkS

Fascinating real-world case study from Walmart on supply chain optimization. They built an approach where the decision to build a new DC and the choice to reroute a single truck are part of the same conversation. A few thoughts: 1 - Simulation will be more important than ever with all of the volatility going on. Their simulation platform runs what-if scenarios that helps leadership stress-test network changes before committing capital. 2 - The load planner function is impressive. It accounts for DOT rules, temperature zones, axle weights, and loading patterns down to the pallet. 3 - From a strategy perspective, the four-tier system: strategic network design, facility alignment/capacity planning, execution planning, and real-time/dynamic execution is really solid. Each layer pushes and pulls on the others so decisions stay relevant.