Read why SAP Customers like Merck work with GenLots
If you are looking for …
- Latest AI innovation for more sustainable supply chain management
- A way to rapidly decrease costs in upstream logistics
- An increased digitalization of your operations
- A better understanding of your supply chain triangle (costs, cash, and service)
- A product already integrated with your SAP system
…for your manufacturing company, then read on:
Why AI in upstream logistics and why now?
SAP customers generate 87% of total global commerce ($46 trillion) and 99 of the 100 largest companies in the world are SAP customers (SAP Corporate Factsheet, July 2022). SAP’s utmost priority is to connect these enterprises in a global sustainable business network.
As we partner with innovative startups like GenLots, we still put our customers first and we leverage the vast number of businesses worldwide that run on SAP to act smarter, more efficiently and more sustainably.
At the recent Viva Technology 2022 in Paris — Europe’s biggest tech event where business meets innovation, my team at SAP.iO (SAP’s startup program) was thrilled to host our partner startup GenLots and discuss on stage how they’ve helped SAP’s customer Merck, a large pharmaceutical company, adapt their upstream logistics (i.e. all operations related to the sourcing of goods destined to be assembled in production) to the challenges of today.
What is GenLots?
GenLots is an AI application helping leading manufacturing companies to achieve their sustainability and efficiency goals through the digitalization of supply and upstream logistics.
In practice, usage of GenLots looks like this:
Let’s say a manufacturing company uses Active Ingredient X in its production and knows the production requirements for this material for the 12 months to come, i.e. the dates on which it will be used and in which quantity. GenLots will automatically compute the Total Cost of sourcing of this material for the next 12 months, including the cost of the material itself (which can be influenced by quantity discounts), the cost of bringing a batch to the manufacturing site each time an order is placed (quality control or transport fees for example), and the cost of holding it until it is used in production (inventory cost).
According to these costs, GenLots’ AI will then optimize the timing and quantity of each order. It may group certain orders to reach a better price, reschedule some deliveries, etc. The savings associated to these changes can reach up to 10% of the Total Cost.