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Akcoat’s 40% Inventory
Reduction: A Digital
Transformation Story

0

drop in raw material stocks

0

reduction in stock value

Planning cycles were reduced
from days to hours

Company Facts
  • Company Name: Akcoat
  • Industry: Chemical Manufacturing
  • Country: Global
  • ICRON Solution: Inventory Planning & Optimization and Procurement Planning

At a Glance

Akcoat, the leading global manufacturer of chemical coating materials, partnered with ICRON to tackle material planning complexities, decrease planning time, and enhance reporting. Since the beginning of this partnership, Akcoat has achieved a 37% decrease in material inventory value. ICRON provides AI-powered decision intelligence solutions for accelerated response time, improved planning, and elevated collaboration among fragmented planners.

Goals – Transitioning from manual to automated planning, improving material ordering times, tracking inventory levels, and controlling procurement costs.

Founded in 1979, Akcoat is a global leader in chemical coating materials, specializing in five main product groups: enamel, ceramic, glass, non-stick decorative coatings, and pigment solutions. Akcoat is a partner of global brands that add value to the white goods, kitchenware, oven, ceramic, and glass industries. Akcoat is part of the Akkök Holding Group of Companies. Akcoat has always prioritized innovation and customer satisfaction across its diverse product lines.

With a growing presence in over 65 countries, Akcoat sought to maintain its competitive edge and implement solutions to support its expansive operations. Akcoat identified the need to enhance its material planning and procurement processes. The company aimed to transition from disconnected spreadsheet-based planning methods to automated systems, improve material ordering times, effectively track inventory levels, and control procurement costs. The following goals were central to Akcoat's strategy for streamlining operations and sustaining its growth trajectory.

01

Establishing an Automated Planning Process

Implementing digital tools to transition from disconnected spreadsheet-based to automated planning, enhancing accuracy and efficiency in material management.

02

Reducing Material Ordering Time

Streamlining procurement workflows to expedite order placements, ensuring timely availability of materials for production.

03

Tracking Material Inventory Levels

Utilizing real-time inventory monitoring systems to maintain optimal stock levels and prevent production disruptions.

04

Controlling Procurement Costs

Employing strategic sourcing and spend analysis to minimize expenses and maximize value in the procurement process.

01

Establishing an Automated Planning Process

Implementing digital tools to transition from disconnected spreadsheet-based to automated planning, enhancing accuracy and efficiency in material management.

02

Reducing Material Ordering Time

Streamlining procurement workflows to expedite order placements, ensuring timely availability of materials for production.

03

Tracking Material Inventory Levels

Utilizing real-time inventory monitoring systems to maintain optimal stock levels and prevent production disruptions.

04

Controlling Procurement Costs

Employing strategic sourcing and spend analysis to minimize expenses and maximize value in the procurement process.

Key Challenges

As a global producer of specialty chemicals and performance coatings, Akcoat’s operations involve managing a wide variety of raw materials, regional market requirements, and complex product formulations. With growing demand and increasing product diversity, Akcoat needed to confront persistent material planning bottlenecks that were slowing operations and inflating inventory. To achieve the goals, Akcoat and ICRON worked together to identify the most pressing planning challenges across their procurement and materials functions –

01

Manual Workload and Risk of Error

Relying on manual planning consumed excessive time and effort for the Akcoat team, increasing the risk of human error. Even small data entry mistakes could derail production schedules and create cascading operational setbacks.

02

Data Integrity and Timeliness Issues

Ensuring up-to-date and accurate data was a growing challenge. In a manual environment, delays and inconsistencies in data updates led to planning decisions based on outdated or incomplete information, putting operational efficiency at risk.

03

Inflexible Scenario Planning

Simulating alternative planning scenarios was slow and inefficient. Without the ability to quickly model and compare different options, Akcoat lacked the agility needed to respond proactively to market or production shifts.

04

Disconnected Data Ecosystems

With Excel-based tools used across departments, there was no real-time integration between planning systems and operational platforms like ERP or MES. This siloed approach made collaboration difficult and led to duplication of work and delays.

05

Dependence on Individuals

Planning knowledge was heavily tied to specific team members, making the process fragile and unsustainable. If key individuals were unavailable, continuity and consistency were at risk.

06

Slow Response Time

Due to the manual nature of data collection and validation, reacting swiftly to urgent changes was nearly impossible. Critical decisions were delayed, affecting everything from procurement to production continuity.

01

Manual Workload and Risk of Error

Relying on manual planning consumed excessive time and effort for the Akcoat team, increasing the risk of human error. Even small data entry mistakes could derail production schedules and create cascading operational setbacks.

02

Data Integrity and Timeliness Issues

Ensuring up-to-date and accurate data was a growing challenge. In a manual environment, delays and inconsistencies in data updates led to planning decisions based on outdated or incomplete information, putting operational efficiency at risk.

03

Inflexible Scenario Planning

Simulating alternative planning scenarios was slow and inefficient. Without the ability to quickly model and compare different options, Akcoat lacked the agility needed to respond proactively to market or production shifts.

04

Disconnected Data Ecosystems

With Excel-based tools used across departments, there was no real-time integration between planning systems and operational platforms like ERP or MES. This siloed approach made collaboration difficult and led to duplication of work and delays.

05

Dependence on Individuals

Planning knowledge was heavily tied to specific team members, making the process fragile and unsustainable. If key individuals were unavailable, continuity and consistency were at risk.

06

Slow Response Time

Due to the manual nature of data collection and validation, reacting swiftly to urgent changes was nearly impossible. Critical decisions were delayed, affecting everything from procurement to production continuity.

Solutions

Given the complexity of Akcoat’s global operations and the urgency to modernize its planning capabilities, the ICRON team recognized the need for a robust and intelligent platform that could streamline material planning, unify fragmented workflows, and enhance responsiveness across the board. Akcoat was seeking not just a solution, but a strategic partner to help embed AI-powered decision intelligence into its operations. ICRON responded with a suite of technologies designed to meet these challenges head-on and turn Akcoat’s goals into measurable results.

The ICRON solution enabled Akcoat to transition from Excel files to an automated and unified planning system. It streamlined the planning process, enabling faster planning, real-time application of information, and utilization of up-to-date data. An objective planning process, independent of individuals and eliminating manual planning efforts, has helped Akcoat improve its overall operational efficiency.

The ICRON Procurement Planning provided Akcoat with precise control over material requirements, utilizing up-to-date product recipes and demand forecasts. It also allowed side-by-side comparisons of projected needs with historical consumption, making it easier to spot inefficiencies. After planning, purchase decisions automatically trigger ERP requests, enabling quicker execution and more effective procurement.

Akcoat now runs daily stock checks through ICRON’s integrated data system, gaining real-time insights into inventory levels. This visibility has helped the team base material planning on actual stock status and avoid unnecessary overstocking. Additionally, monthly monitoring of optimal stock thresholds enables proactive adjustments, ensuring materials that are over- or under-stocked are quickly addressed.

Results

  • Digitized the entire material supply planning process, enabling a seamless, end-to-end workflow from procurement to execution.
  • Boosted cross-functional collaboration through enhanced visibility and shared access to real-time planning data.
  • Streamlined material planning with data-driven decision intelligence, reducing manual effort and improving responsiveness.
  • Achieved a 40% reduction in raw material quantities and a 37% decrease in stock value compared to 2022, significantly improving inventory efficiency.
  • 23% reduction in stock days.
  • Digitized the entire material supply planning process, enabling a seamless, end-to-end workflow from procurement to execution.
  • Boosted cross-functional collaboration through enhanced visibility and shared access to real-time planning data.
  • Streamlined material planning with data-driven decision intelligence, reducing manual effort and improving responsiveness.
  • Achieved a 40% reduction in raw material quantities and a 37% decrease in stock value compared to 2022, significantly improving inventory efficiency.
  • 23% reduction in stock days.

ICRON’s AI-driven planning solutions have reshaped how we manage material planning and procurement. What once took days now happens in hours, with better accuracy, clearer inventory visibility, and faster execution. We've reduced excess stock, gained full control over material requirements, and significantly improved our planning agility. Most importantly, we achieved sustainability through digitalization. ICRON didn’t just provide a tool—they became a partner in helping us evolve our processes for the better.

Fırat Nişancı
Supply and Production Planning Manager

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