Predictive Procurement for Traffic Signal Manufacturing
The Challenge:
A traffic management products manufacturer faced frequent stockouts of critical electronic components (LEDs, controllers, power supplies) due to long lead times (12-16 weeks) and unpredictable demand from municipal projects. Stockouts delayed orders causing $320K in expediting costs and penalty clauses annually.
The Solution:
Deployed Azure AI models on Fabric analyzing historical orders, municipal budget cycles, and infrastructure project data to predict component demand 6 months ahead. Power Automate triggered purchase requisitions automatically when inventory forecasts indicated shortages. Power Apps provided procurement team with recommended actions and scenario planning.
Result:
Stockouts reduced from 18 incidents annually to 2, expediting costs decreased by 87% to $42K, and inventory carrying costs optimized through 23% reduction in safety stock while maintaining 98% order fulfillment rates.