Retailer Improves Lead Time Accuracy by 55% with AI Control Tower


Value-Driven Benefits

55%

improvement in lead time accuracy at the time when purchase order is created to improve downstream planning

25%

improvement in lead time accuracy once order is in transit to allow for real-time risk management

$30M

estimated annual economic benefit when scaled to all import orders

Introduction

A global retailer offers a wide assortment of products across 2,000 retail locations and is a major importer in North America with over 100,000 SKUs and 65 distribution centers. The company’s mission is to deliver the best customer experience at the lowest prices in its retail category.

Challenges

The company operates a highly complex supply chain, with a vast volume of purchase orders, suppliers, and extensive network of distribution and retail sites. Keeping orders on time and avoiding stockouts is especially critical for business success in a market where the retailer’s high-quality customer experience is a key differentiator.

Prior to engaging with C3 AI, the company faced challenges in accurately predicting lead time for inbound purchase orders and evaluating supplier performance. The existing approach relied on static and one-size-fits-all lead time estimates, which failed to account for supplier-specific uncertainties and the dynamic nature of the broader supply chain.

Solution

To address these challenges, the company decided to partner with C3 AI to deploy C3 AI Supply Network Risk (SNR), an end-to-end visibility and control tower AI application, to enable holistic visibility across its supply network, starting with orders coming from international suppliers. To deliver high inventory service level and avoid stockouts, the company required uncompromised visibility into inbound purchase orders and sourcing delays for downstream transportation, capacity, and labor planning.

Results

By deploying C3 AI SNR to improve lead time visibility and prediction accuracy for its import orders, the company increased lead time prediction accuracy by 55% and daily in-transit lead time prediction accuracy by 25%. When deployed to all import orders, the company expects to realize up to $30 million in annual economic benefit through reductions in inventory, transportation, and labor costs.

Solution Architecture

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Proven results in weeks, not years

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