An industrial wire distributor with 12 warehouses and 6,000+ SKUs faced significant supply chain challenges including inefficient order routing, inadequate ERP inventory classification and limited visibility into critical insights. A long history of poor order routing created low-quality historical data in the ERP. The ERP system’s item/site classification rules were based on this flawed historical data leading to incorrect inventory placement recommendations. As a result, the ERP was signaling for stock to be located at sites where there wasn’t actually true demand. This resulted in many inefficiencies including stockouts, overstock issues and strained purchasing decisions.
The supply chain team needed a smarter approach to this complex issue. They needed the ability to improve at scale, realizing optimization benefits within a reasonable budget for IT consulting services. Persepta collaborated closely with the customer to analyze supply chain challenges, inefficiencies, and strategic goals. A Go Forward strategy was quickly envisioned and executed.
Persepta implemented its Supply Chain Digital Twin Solution, built on Microsoft Azure and Fabric platforms, leveraging the Inventory & Network Optimization Solution Accelerator. This advanced digital twin created an optimized virtual version of the business, enabling smarter inventory purchasing decisions rather than relying on historical data with inefficient order routing. The supply chain team could simulate business impacts before implementing strategic decisions at scale, enabling agility and operational efficiency. Automated intelligent order routing leveraging the optimized digital twin improves value of the historical data better reflecting true demand.
The industrial wire distributor struggled with poor order routing process, inadequate ERP inventory classification and limited visibility into critical insights. Consequently, supply chain personnel’s buying decisions were hindered by the ERP’s incorrect item/site classifications. Management did not have insights necessary for informed decision-making.
These challenges placed a heavy strain on key personnel, making purchasing decisions harder and increasing workload. As a result, inventory built up in the wrong locations, driving higher costs and tightening working capital.
Without automation, tracking invoices and matching them to purchase orders was slow and inconsistent, leading to delayed financial close cycles and increased costs. As invoice volumes grew, the company needed a scalable solution to streamline AP and improve efficiency.
Persepta’s experienced team worked closely with the distributor to understand their business goals and how Data & Analytics strategies may better enable key personnel. The customer’s goals included improved item/site classification, inventory strategy simulation and automation.
Persepta’s Inventory & Network Optimization Solution Accelerator was deployed on the Microsoft Azure platform. The solution produced a historical supply chain digital twin. Optimization models processed on the digital twin resulted in an optimized digital supply chain simulation of the business. As a result, supply chain personnel were enabled to automate improved buying decisions.
Implementing Azure AI Document Intelligence transformed the electrical contractor’s AP invoice processing, eliminating manual data entry errors and significantly reducing processing time. The automation accelerated invoice approvals, improved cash flow and enhanced working capital with accelerated customer billing.
By integrating seamlessly with the ERP system, the solution streamlined workflows, reduced administrative overhead and minimized payment delays. This increased efficiency, lower operational costs and real-time tracking provided the company a scalable, intelligent accounts payable process that supports long-term growth and financial stability.
Supply Chain Executive
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