Faller Packaging optimises its supply chain with artificial intelligence

Faller Packaging optimises its supply chain with artificial intelligence
Supplier News

Faller Packaging relies on artificial intelligence (AI) to make its supply chain more efficient. The packaging specialist can use the data-driven system based on the Paretos platform to make precise forecasts, reduce its storage costs and ensure a secure supply.

A dependable supply chain requires forecasts that are as reliable as possible. Faller Packaging previously relied on its sales team’s assessments and customer feedback. “These forecasts were often inaccurate and that affected our production planning and made it difficult for us to meet our delivery commitments,” explains Gerardo Rendina, Vice President for IT & Digitization at Faller Packaging. The company decided to implement an AI-powered solution based on the Paretos platform in order to become more sustainable and flexible in the future.

An AI application based on the Paretos platform optimises Faller Packaging’s supply chain by ensuring precise predictions and a secure supply to customers. Photo credit: Faller Packaging

The key to optimising the supply chain

Artificial intelligence plays an important role in supply chain management. It analyses large volumes of data and recognises patterns that simplify forecasts. This enables companies to plan their resources more efficiently and react more quickly to market changes. Nils Höpker, Director of Executive Projects at Faller Packaging, emphasises: “With the new AI application, we can rethink and digitally manage the pharma supply chain.”

The introduction of the data-driven system brought rapid success, with an increase of 50 percent in forecasting accuracy and predictions up to 16 months in advance thanks to the rolling forecasts. In this way, Faller Packaging not only improves its delivery reliability, but also reduces storage costs. Now the packaging specialist is also much more flexible when it comes to changes in the market – and the company can also optimise the allocation of resources. Gerardo Rendina was particularly impressed by the speed of implementation: the system was up and running in just four months. “The focus was on action and results, not on return on investment. That impressed me.”

Supply chain experts at Faller Packaging: Gerardo Rendina (left), Vice President for IT & Digitization and Nils Höpker, Director of Executive Projects. Photo credit: Faller Packaging

A glimpse of the future

This success story shows how the targeted use of artificial intelligence in supply chain management can not only increase operational efficiency, but also improve customer relationships. Following a successful test run with a limited product group, Faller Packaging is planning to expand the AI solution. The knowledge gained will not only be incorporated into production planning, it will also improve procurement and other logistics processes. The aim is to manage the inventory in line with demand, reduce excess stock and thus achieve even more cost savings. “This is just the beginning of an optimisation journey,” says Höpker. “We’re already considering how we can apply these findings to other areas.”

This article was originally published by Faller Packaging.

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