Precise forecasts instead of gut feelings

In order to plan and act with foresight, ABICOR BINZEL has focused on digitalization in its supply chain network at an early stage – including artificial intelligence. The welding technology specialist has thus created the necessary transparency to not only get through the last few years well, but also to remain clearly on course for growth, as COO Philip Röhrig reports. 

ABICOR BINZEL is a leading global manufacturer of cutting and welding torches. The company, based in Buseck, Hesse, has grown steadily in recent years. “We now have 38 subsidiaries and are present in over 50 countries,” says Chief Operating Officer (COO) Philip Röhrig. The company's global operations place high demands on production, sales, and service. Although the individual subsidiaries had optimized their supply chain networks locally, even before the outbreak of the current global crisis, the management recognized that inventories in the global network were not being managed optimally in terms of costs and transparency. This had a negative impact on both delivery speed and margins. “We are familiar with the situation ABICOR BINZEL found itself in at the time from many projects,” says Achim Schwichtenberg, partner at Supply Chain Excellence. “The problem is that companies often operate internationally but are not internationally networked,” explains the supply chain expert.

Lagerbestände um 20 Prozent reduziert  

Das Unternehmen entschied, dieses Problem aktiv anzugehen und das komplette Supply Chain Network zu digitalisieren. Durch den Einsatz einer Optimierungssoftware wurden Datensilos aufgebrochen und der Datenbetrieb wurde neu geordnet. Inzwischen nutzen alle Tochtergesellschaften die Software, die Prozesse sind vernetzt. So stellen beispielsweise einheitliche Materialnummern weltweit die Transparenz im Netzwerk sicher. Der Einblick in die gesamten Lagerbestände ermöglicht es, Waren lokal ausfindig zu machen und sie, wenn benötigt, von einer Tochtergesellschaft zur nächsten zu schicken. „Heute sind wir in der Lage, den Warenbestand weltweit deutlich besser zu managen“, sagt COO Röhrig. „Durch die getroffenen Maßnahmen konnten wir die Kapitalbindung an den einzelnen Standorten verringern. Die Lagerbestände sind um 20 Prozent gesunken, ohne dass ABICOR BINZEL an Servicequalität eingebüßt hat. Außerdem haben wir unseren Luftfrachtanteil halbiert.“ 

Sales and margins increased with the help of artificial intelligence  

The company now uses artificial intelligence (AI) for sales planning. Instead of relying on the gut feelings of individual colleagues for supply chain network management, data collected worldwide is now used and analyzed for sales forecasts. “In the past, we often only saw problems when they arose, and by then it was sometimes too late,” says supply chain expert Röhrig. “Today, our planning is much more forward-looking. Predictions allow us to identify problems early on, so we can still take action and implement measures.” And that's not all: the company also uses AI to identify areas of growth potential. This has already enabled it to gain new market share and increase sales and margins.