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Case Study

AI-Enabled ERP for Hygiene Products Manufacturer

A fast-growing hygiene products manufacturer was experiencing complete disconnection across its internal operations. Procurement lacked visibility into production schedules, Sales had no real-time view of available stock, and Finance was working from outdated information. Without a unified data source, the organization faced both overstocking of certain materials and critical shortages of others.

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Solution

Built a full-company ERP spanning production, procurement, sales, warehouse, and finance, featuring an AI demand-planning module that calculates material requirements against supplier lead times to support Lean Inventory without risking line stoppages.

The core architectural principle is simple: every module feeds the others. When a sales order is confirmed, production planning is updated immediately, which in turn updates material requirements and shows procurement exactly what needs to be ordered and when, while accounting for each supplier's delivery lead time.

Key Achievements

Implementing the ERP with AI-driven Lean inventory within 12 months delivered the following results:

-35%

Reduction in raw material inventory value compared to the previous 6 months

0

Production stoppages due to material shortages over 12 months

-25%

Reduction in time from sales order creation to production scheduling

Stack & Architecture

Frontend

All UI for ERP solution

React + TypeScript

Backend

Business logic, MRP engine, AI model serving

Java / Spring Boot

AI / ML

Demand forecasting and stock calculation

Prophet + XGBoost

Database

Single source and data storage

PostgreSQL

Barcode

Warehouse goods movements, goods receipt

Zebra / mobile scan

Infrastructure

Hosted SaaS infrastructure

AWS

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Key Features

Production Planning

Real-time production visibility and cross-department coordination for production orders, materials, and work-in-progress across all product lines (maxi pads, medical garments, gloves, wet wipes), with clear control across departments.

AI Demand Forecasting

Machine learning model forecasts demand per SKU from order history, seasonality, and customer patterns to help reduce stockouts and lower excess inventory. It feeds directly into Material Requirements Planning (MRP) to improve vendor planning by specifying order timing and quantities based on vendor lead times.

Lean Inventory

Calculates dynamic reorder points and safety stock levels per material based on demand variability and supplier reliability, helping inventory managers lower carrying costs and reduce stockouts.

Procurement Management

Streamlines supplier records, purchase orders, goods receipts, and three-way matching (PO / GR / invoice) to improve control and efficiency across procurement operations, while automatically generating Lean Inventory recommendations for buyer review and approval.

Warehouse & Inventory

Bin-level inventory tracking across raw materials, WIP, and finished goods with barcode-based movements for full traceability. Improve warehouse workflows with real-time stock valuation and lot/expiry date tracking for perishable items, while reducing stockouts and keeping inventory under control.

Finance & Management Reporting

Automate accounts payable, accounts receivable, COGS, and product margin reporting directly from operational data to give financial operations leaders on-demand management P&L visibility without waiting for month-end close.

Why Lean Inventory succeeded

Previous attempts to reduce stock failed because teams did not trust static minimum stock levels. The AI model improved inventory optimization by making reorder points dynamic and explainable, so buyers could see exactly why a specific quantity was recommended based on demand forecasts and supplier lead times.

Facing similar manufacturing management challenges?

Ready to unlock greater production efficiency and lean inventory benefits? Let's talk about your current operational challenges.

Schedule a discovery call, and our team will deliver a free 4-6 page strategic blueprint showing how a custom AI-driven ERP can solve your business challenges.

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