Artificial intelligence-powered supply chain management software firm Verusen today announced the launch of AI for Spare Parts Criticality, a new evaluation and optimization solution that understands item criticality and operational risk to drive improved stocking strategies for enterprises and manufacturers.
Item criticality is the importance or priority of a specific item, such as a spare part, within the context of operational risk and supply chain management. In maintenance, repair and operations, item criticality is used to evaluate how essential a part is to the continuous operation of equipment or production processes.
AI for Spare Parts Criticality solution assesses item criticality to help organizations determine which spare parts are most vital for ensuring operational continuity and performance. It does so by analyzing factors such as how and where assets are used, supply chain conditions, such as vendor availability and lead times and operational risks.
Verusen processes material data, identifies operational risk for each item and analyzes and prioritizes the most critical spare parts for continuous operations and production uptime to reduce operational risk. AI for Spare Parts Criticality also measures demand and supply-side factors, including where/when/how assets are used, assessing work orders, Bills Of Materials and other market factors, including price and availability of single versus multi-source assets.
According to the company, addressing on-hand and fast-moving inventory optimization for a single industrial company can deliver bottom-line cost reductions ranging from $50 million to $190 million in savings and organization-wide inventory spending can be reduced by as much as 45%. With the new solution, it claims, organizations can attain measurable, bottom-line financial results within six months.
“Now is the time to invest in asset and inventory management, specifically criticality,” said Chief Executive Scott Matthews. “Industrials and manufacturers, having survived pandemic-era supply chain challenges, are still struggling with decade-old data concerning their materials management and ERP system.”
Verusen, formally known as Autit Inc., is a venture capital-backed startup that has raised $33 million in funding across two rounds, including a round of $25 million in January 2022. Investors in the company include Scale Venture Partners LP, Glasswing Ventures, Flyover Capital Partners, Zetta Venture Partners LP, Forte Ventures Inc., BMW i Ventures GmbH and Kubera VC.