When Luminarity Meets Complex Product Portfolios

The Challenge

An internationally operating industrial company based in Switzerland with approximately 3,200 employees worldwide, approached us with a clear objective: to increase transparency in their product and component portfolio, review pricing logic, and make fact-based savings potential visible – and to do so quickly, thoroughly, and in a scalable way. The solution: Luminarity Product Data Intelligence.

Three Phases, Twelve Months, One Ambitious Goal
Phase 1: Luminarity Learns the Product Portfolio in 4 Weeks

In manufacturing companies, the volume of data generated is enormously high. After all, every item, whether purchased or self-produced, is digitally represented in a 3D CAD system. For our client, more than 60% of the company's data is product-descriptive data. A large proportion of the 120,000 active items are described digitally as 3D models, 2D drawings, or in data sheets. For Luminarity to process this data, the integrated Data-Driven Engine transforms the data completely autonomously into a form usable by artificial intelligence – into so-called UPRs (Unified Part Representations). Subsequently, Luminarity analyses the data, identifies patterns, finds illogical pricing structures, calculates optimisation potential in procurement, and bundles the items fully automatically.

Luminarity understands not only 3D CAD models but also product-descriptive data such as 2D drawings and transforms the data into a form usable by AI.

To quantify savings potential, the technical parameters collected via the Data-Driven Engine are complemented with commercial information from the ERP system: prices, order quantities, Incoterms, etc. The newly created data foundation is excellent and distinguished by an extremely high level of detail.

Identified Does Not Mean Realised
Phase 2: Validating savings

When 120,000 items can be analysed in just a few days, savings potential is practically guaranteed – as was the case with our Swiss client. Luminarity highlights different degrees of implementation of the potential. The potential is presented in the dashboard in various groups and is classified into quick implementation (Quick Wins), relocation potential, consolidation potential, bundling potential, standardisation potential, and many other analyses. Luminarity carries out and classifies the analyses completely autonomously.

Luminarity analyses thousands of items fully automatically and categorises the potential

From Potential to Hard Currency

Overall, CHF 2.2 million in fact-based savings potential was identified. The identified potential is now being validated. Validation is carried out by two trained employees at our client's company. Ten to twelve months later, reality exceeded expectations once again. An impressive 78% of the potential identified by Luminarity was converted into concrete projects. Within 10–12 months, CHF 1.4 million in savings was effectively realised.

Luminarity delivers extremely fact-based and quickly implementable savings potential

The Numbers Speak Clearly
The overall result after 12 months of project duration:

• CHF 1.4 million in realised cost savings
• 84% conversion rate from identified to validated potential
• 78% implementation rate from validated to realised savings
• 100% convinced employees

Or to put it another way: out of every Swiss franc of savings potential identified by Luminarity, 72 centimes were actually saved in the end. In the highly specialised industry of our client, there is no room for "approximately" or "should actually work". These precision requirements proved to be a perfect test case for AI-based cost optimisation with Luminarity Product Data Intelligence. Eight months from the first analysis to the realised million – an impressive achievement.

Looking Forward: More Than Just Cost Reduction

What began as a cost savings project is developing into something greater: an efficiency and innovation boost that captures the entire company. Luminarity not only uncovers savings potential in the existing product portfolio but also delivers integrated and lightning-fast cost predictions for new items, classifies those fully automatically into the correct commodity groups, and calculates tariff numbers completely automatically.

Ready for a Success Story?

If you believe artificial intelligence is only for tech giants and science fiction films, then let this example prove otherwise. Sometimes the future is closer than you think – and more profitable than you dare to dream. Your product portfolio contains savings potential – the question is not whether, but how much. If you would like to know what results are possible in your company – Luminarity is ready.