Large conglomerates worldwide strive towards digital transformation, which typically takes years to accomplish. However, Godrej & Boyce has been a prominent exception as it witnessed a booming 2021 in terms of transformation, with massive rate of Artificial Intelligence (AI) adoption.
Poorav Sheth, Chief Digital Officer, Godrej & Boyce quoted, processing a handful of things and dealing with 3-4 variables is how far human capabilities can extend, whereas processing enormous amount of information with 30 variables and criteria is beyond human expertise.
This is where machine learning outperforms manual performance, as these models assist throughout the recommendation process to the production planner.
Additionally, Godrej & Boyce also applies an AI engine to forecast the demand, and such advanced integrated systems that are also used in production planning aid in procurement of raw materials.
Mr. Sheth mentioned, demand forecasting is gaining momentum given to its focus on seasonality, historic trends and demand, which makes sense for the company to incorporate parameters such as macroeconomic data and others to reach 90%-95%.
Imperative to note, shipping is extremely crucial for Godrej Interio, one of the subsidiaries of Godrej & Boyce. It is a complex step with diverse range, size and variety of packages, which the algorithm helps by assisting in planning space optimization by determining ideal load and space.
On the other hand, for production planning, the company looks for two measures, first is OTIF (One Time In Full), which determines the speed at which Godrej & Boyce is able to turn things around.
Second, measures the profitability margin of the company. Using these data and analytics can improve the OTIF to surge to 90-95%.
According to Mr. Sheth, the company has only scratched the surface, and with continuous advancements in statistical and analytical models, Godrej & Boyce will only further expand.