Optimize purchasing,
reduce inventory costs
AI forecasts material demand from your production schedule, calculates economic order quantities, analyses total cost of ownership per supplier, and flags shortages before they disrupt operations.
From reactive ordering to demand-driven purchasing
Purchasing in most companies is reactive - orders are placed when stock runs low, quantities are based on habit rather than calculation, and supplier selection defaults to "whoever we used last time." The result: excess inventory tying up capital in some categories while stockouts halt operations in others. Nobody tracks total cost of ownership across suppliers, so the cheapest unit price wins even when lead time, quality, and logistics costs make it the most expensive choice.
KFactory's Purchasing Planning Engineer connects purchasing to your operational schedule. It forecasts material demand from planned orders, calculates economic order quantities (EOQ) that balance ordering costs against carrying costs, and analyses total cost of ownership (TCO) across suppliers - including unit price, freight, quality rejection rates, and lead time variability. In warehouses and distribution centres, computer vision monitors bin fill levels and stock positions in real time - triggering replenishment before shortages occur, without manual stock counts. Spend analytics identify concentration risk: your top 20% of suppliers typically represent 80% of spend.
The result: purchase orders driven by actual demand, optimised quantities, and supplier decisions backed by TCO data rather than unit price alone.
The result: inventory carrying costs fall 20-30%, stockouts disappear because shortages are flagged before they happen, and purchasing decisions are based on total cost - not just the unit price on the invoice.
What you can expect
Reduce inventory carrying costs by 20-30% while preventing stockouts.
Based on inventory management benchmarks for operations. EOQ and demand-driven purchasing typically reduce carrying costs by 20-30% (APICS/ASCM). Use the impact calculator to model your scenario.Beyond direct cost savings, demand-driven purchasing frees up working capital, reduces emergency procurement premiums, and eliminates the hidden cost of production stoppages caused by missing materials.