Supply Chain Visibility is top of mind for businesses heading into 2023. With global supply chains still reeling from the pandemic, supply shortages, and countless other factors, companies are taking a hard look at their procurement processes to shore up cash flow and set themselves up for success heading into the new year. One of those is Extract Companies, with Steve Carpenter overseeing the procurement process as part of Supply Chain & Logistics.
Meet Steve and Extract Companies
Starting out on their journey for visibility into their supply chain, one of the first things Steve’s team said they wanted was visibility into months of supply on hand. Steve quickly realized that AI could give them the insight they needed into their supply chain. Some of the questions Steve kept asking was, “are we meeting our landing dates, inventory turns, and all of the other points that we need to hit?” Steve was also prioritizing the ability for Extract to accurately monitor cost increases across the board, which are common in the Oil & Natural Gas sector.
Overreaction, Not Proaction
Steve began to see, industry-wide, that overreaction to supply chain problems was common, rather than taking proactive steps to address supply chain problems before they happen. When that happens, most companies buy too much inventory and start to experience margin erosion. Where once companies were concerned with stockouts in 2020, in 2022 companies are now concerned with excess stock. Gaps in ERPs were leading to a lack of visibility, and Steve’s team was ready to turn the page on outdated, stale dashboards.
Steve’s team required adept reporting capabilities that provided proactive information about what to buy and when to avoid making rash moves that had negative effects months down the line. Once Steve’s team implemented AI, it was a whole different ball game. The team could use the AI to validate the industry knowledge of tenured team members, and offer visibility into areas that had not been examined before, such as pricing analytics into BOM hierarchies.
“It’s hard to drive action off of feelings, it’s really easy to drive action off of clear, defined logic.”Steve Carpenter, Extract Production
When it comes to managing cash flows and boosting productivity in the face of an uncertain 2023, AI brings the needed visibility to supply chains. Request a demo to see how.