Using AI for the “big picture” on distribution costs
A large Oil & Gas company’s transportation costs were rising at a rate that put a portion of its operations in the red. The organization was focused heavily on “first-mile” cost, rather than on final mile or total landed cost. In addition, an ERP implementation was making cost comparisons and analyzing trends difficult. To better manage its distribution across its products, company leaders decided to harness AI for better insights. Integrating data from multiple disparate sources, the company used AI analysis for information on well sights; trucking, rail and ocean lanes; warehouses; suppliers; and high-traffic stock-keeping units (SKUs). Using a focus on total landed cost, it was able to flag over US$30 million in savings.