Post by account_disabled on Mar 4, 2024 5:19:56 GMT -5
Supply chain disruptions have been a headache for manufacturers trying to keep production lines running. Shortages of material inputs and maintenance supplies can disrupt even the most streamlined processes. The ships are queuing up at ports around the world, underscoring how difficult it is to keep production lines running. Today, we’re announcing a major investment in Verusen, whose machine learning software sits on top of traditional ERP to help manufacturers reduce the financial and operational burden associated with trusting their materials supply. Scale has been investing in supply chain technology through investments since 2016. The problem Verusen is solving will be familiar to anyone with a manufacturing background or who has been in the news recently looking at the many causes of supply chain failure. Inventory Challenges Are Pervasive in Manufacturing There are two aspects to getting inventory levels “just right”: financial and operational. On the financial side (often the purview of company executives), the focus is on avoiding working capital inefficiencies. Spending too much money on unnecessary inventory is a waste that only keeps growing. These executives are tasked with reducing waste and ensuring that working capital is not constrained. On the operational side (often the domain of plant-level managers and employees), the focus is on managing risks or quickly resolving supply shortages that impact the core productivity KPIs for which they are responsible. From this perspective, excess inventory is not actually a problem;
The time it takes to resolve inventory issues is the problem because it takes time to hit production KPIs. As we’ve heard in conversations with Verusen customers, these two sets of incentives are often at odds. Typical materials Paraguay Mobile Number List management processes reflect this. Inventory data exists in the enterprise ERP but is entered and maintained by plant-level employees through manual data entry. Corporate standards theoretically ensure consistency across sites, but in practice, compliance is often inconsistent and untimely. Ultimately, ERPs are riddled with duplicate entries and errors, creating inefficiencies that prevent companies from understanding and trusting their material data. Traditional data cleaning methods are tedious, expensive, and slow, and by the time you're done, the "clean" data is obsolete. This is where Veruson comes into play. Verusen launches material intelligence The difficult orchestration required to optimize inventory and get it right is an almost universal pain point for manufacturers. Verusen’s revolutionary machine learning changes this dynamic. Overall, the software is an intelligence layer that sits on top of the ERP platform and is responsible for three major things: Replaces traditional, manually cleaned ERP records with self-learning, self-cleaning, always-on material management intelligence; Coordinates different manufacturing locations between entries.
For example eliminating duplicate/alternative entries for the same material; supporting search so that natural language searches can be used within material records. Verusen’s automatic cleaning feature sets the stage for the huge impact of the other two optimization features (better understanding of data leads to better coordination and search). Verusen Matching AI spans 80k different training points and is particularly suitable for inventories. It is designed as a human-computer interaction system where the end user can accept/reject Verusen's suggestions for material data changes. Our research shows that proposal acceptance rates for new clients are 15-20%, climbing to around 50% in the first year, with some of the company’s early clients achieving close to 100% acceptance rates. This rapid progress means SaaS customers will experience better performance every time they use the system. Verusen is especially valuable during times of supply chain disruption. For the first time, different manufacturing sites within a company can "share" inventory as needed. For example, Verusen customers can find specific replacement materials at sister sites and avoid downtime caused by order backlogs waiting for replacement parts to arrive. This kind of inventory intelligence is truly revolutionary for many manufacturers. A new era in supply chain Since our first meeting in 2019, we have been impressed by Verusen and its founder and CEO, Paul Noble.
The time it takes to resolve inventory issues is the problem because it takes time to hit production KPIs. As we’ve heard in conversations with Verusen customers, these two sets of incentives are often at odds. Typical materials Paraguay Mobile Number List management processes reflect this. Inventory data exists in the enterprise ERP but is entered and maintained by plant-level employees through manual data entry. Corporate standards theoretically ensure consistency across sites, but in practice, compliance is often inconsistent and untimely. Ultimately, ERPs are riddled with duplicate entries and errors, creating inefficiencies that prevent companies from understanding and trusting their material data. Traditional data cleaning methods are tedious, expensive, and slow, and by the time you're done, the "clean" data is obsolete. This is where Veruson comes into play. Verusen launches material intelligence The difficult orchestration required to optimize inventory and get it right is an almost universal pain point for manufacturers. Verusen’s revolutionary machine learning changes this dynamic. Overall, the software is an intelligence layer that sits on top of the ERP platform and is responsible for three major things: Replaces traditional, manually cleaned ERP records with self-learning, self-cleaning, always-on material management intelligence; Coordinates different manufacturing locations between entries.
For example eliminating duplicate/alternative entries for the same material; supporting search so that natural language searches can be used within material records. Verusen’s automatic cleaning feature sets the stage for the huge impact of the other two optimization features (better understanding of data leads to better coordination and search). Verusen Matching AI spans 80k different training points and is particularly suitable for inventories. It is designed as a human-computer interaction system where the end user can accept/reject Verusen's suggestions for material data changes. Our research shows that proposal acceptance rates for new clients are 15-20%, climbing to around 50% in the first year, with some of the company’s early clients achieving close to 100% acceptance rates. This rapid progress means SaaS customers will experience better performance every time they use the system. Verusen is especially valuable during times of supply chain disruption. For the first time, different manufacturing sites within a company can "share" inventory as needed. For example, Verusen customers can find specific replacement materials at sister sites and avoid downtime caused by order backlogs waiting for replacement parts to arrive. This kind of inventory intelligence is truly revolutionary for many manufacturers. A new era in supply chain Since our first meeting in 2019, we have been impressed by Verusen and its founder and CEO, Paul Noble.