AI-based clustering revolutionizes the creation of product planning families

As an international company headquartered in Milan, our client was facing a huge task: transforming their global supply chain in just two years—with different ERP systems and data structures caused by lots of mergers and acquisitions. The challenge? Creating consistent product families and planning logic as the basis for software for sales planning and inventory optimization.

The innovative solution: AI-supported clustering
Instead of manual categorization, we relied on an AI-generated approach with machine learning models. At the core of the method was a cluster-technique, that automatically analyzed and grouped product-specific data—from material properties and delivery times to sales patterns. The trained model recognized even complex patterns in over 15 million data sets and used them to form logical product families.

Concrete results in fast motion:

• 80% faster structuring of global planning logic versus manual methods

• Reduction of data inconsistencies by 65% through AI-powered cleansing

• On-time introduction of the software despite the complex initial situation

• Cost savings of €1.2 million through avoided planning errors

Why is this approach so effective?
Our AI clustering method goes far beyond classic ABC analyses:

• Multidimensional attributes: Consideration of 23+ factors per product

• Dynamic adjustment: Self-learning algorithms respond to market changes

• scalability: Transferability of the structure to 15+ subsidiaries

"AI clustering enabled us to achieve a global planning language “Establishing a reliable sales forecast is essential for our business. It provides us with the basis for precise sales forecasts and optimized inventory levels,” emphasizes the company's CIO.

How you benefit from our AI clustering consulting:

• Time compression: Reduce structuring processes from months to weeks

• Data-driven decisions: Solid foundation for investments in product lines

• Future-Proofing: AI models grow with your business

Are you facing similar challenges in product categorization or supply chain optimization?
Our team of experts develops customized AI solutions that not only work in theory, but also in practice. on-time and on-budget delivering results – as with our flagship customer in Milan.

“What used to take teams months to accomplish, AI now solves in days—and finds connections we would never have seen.”
– Supply chain director at the customer's company