“Where is my product coming from?”

“What is the true cost of each component?”

“Are there critical materials that impact the flow and cost of my good?”

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These questions and more often go unanswered for global supply chain organizations looking to lower cost and improve their bottom line. Without answers to these questions, many companies remain disadvantaged in supplier negotiations, sourcing decisions, and design adaptations. Hidden costs can significantly impact profitability and, and seriously hamper any ability to drive sustainability throughout the supply chain. For far too long understanding these hidden complexities have been difficult to unravel. With Muir’s dynamic cost modeling abilities powered by our proprietary Product Origin Engine. 

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The Approach 

Muir autonomously evaluates and deconstructs a product into its primary components, and recursively analyzes the components to their raw materials. This allows supply chain teams to predict sourcing locations, manufacturing steps, energy consumption and associated labor for every component or material.

The following cost contributors are mapped to all the manufacturing processes and raw materials used to produce an end product, resulting in a comprehensive bottom up cost estimate:

Materials -  All raw materials and commodities upstream of the good. 

Labor cost - All direct and indirect labor costs are estimated for every manufacturing step.

Energy - Electricity and fuel consumed are estimated for every manufacturing step.

Value add - For each finished or semi-finished good generated through the supply chain, an implicit value add cost analysis is incorporated.

With dynamic cost models across your supply chain, organizations are leveraging Muir to make more informed procurement decisions and anticipate potential disruptions. Moreover, these analytics enable companies to identify opportunities for cost savings, optimize resource allocation, and enhance overall operational efficiency.

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The ROI of Implementing Muir AI’s Dynamic Cost Modeling

Actionable recommendations - Muir AI’s insights help identify alternative sourcing options and prepare for various scenarios. The insights also enable companies to improve negotiations by understanding material cost drivers and should-costs, ultimately increasing resiliency.

Long-term financial returns - The platform aids in creating future products and supply chains that are optimized for cost by generating forward-looking projections and identifying optimal geographies and materials.

‍Sustainability with savings - In addition to Muir’s Product Origin Engine, Carbon Origin seamlessly incorporates sustainability into procurement decisions. Muir AI helps organizations become more sustainable while achieving financial prudence.