Yili, the largest dairy producer in Asia, has dramatically transformed its supply chain operations by integrating Convect AI’s Supply Chain Planning solution, specifically leveraging the Integrated Business Planning module of the Flow Platform. This shift marked Yili’s move from traditional, Excel-based, rules-driven planning methods to a cutting-edge, AI-driven, optimization-focused process.
Historically, Yili managed its extensive supply chain operations through manual, sequential planning processes, heavily reliant on Excel spreadsheets. This approach not only limited visibility across the supply chain but also constrained the company’s ability to respond agilely to market changes. Recognizing the need for innovation, Yili turned to Convect AI to overhaul its supply chain management.
The implementation of Convect AI’s Integrated Business Planning module enabled Yili to harness the power of artificial intelligence and advanced optimization algorithms, facilitating a more dynamic and interconnected planning approach. This transition supported a fundamental shift in company culture from manual, isolated planning efforts to an automated, synchronous planning ecosystem.
The adoption of Convect AI’s technology brought significant improvements to Yili’s supply chain efficiency:
Reduction in Transportation Costs: Through sophisticated network optimization, Yili achieved a remarkable 17% reduction in transportation costs. Convect AI’s solution enabled smarter routing, load optimization, and frequency of deliveries, which significantly lowered logistical expenses.
Increased Productivity: By reallocating production across its facilities, Yili increased its overall productivity by 5%. The AI-driven tools provided by Convect AI allowed Yili to optimize its manufacturing processes and distribution strategies, ensuring that production resources were utilized more effectively.
Cultural Shift in Planning: Perhaps most profoundly, the switch to Convect AI’s platform transformed Yili’s internal culture. The move from a manual, sequential planning process to an automated, synchronous one not only enhanced operational efficiencies but also empowered Yili’s workforce to embrace a more strategic, data-driven approach to decision making.
Yili’s successful integration of Convect AI’s Supply Chain Planning solution exemplifies the potential of AI and optimization technologies to revolutionize traditional supply chain operations. By embracing these advanced tools, Yili has not only improved its operational efficiencies but has also positioned itself as a forward-thinking leader in the dairy industry. This case study serves as a powerful testament to the transformative impact of technology in scaling operations to meet the demands of a modern, dynamic market.
