Big River Steel reduces cost of outbound transportation and optimises delivery windows using machine learning
Summary:
Big River Steel has implemented Noodle.ai's enterprise AI solution aiming to optimize operations at the company's new metal recycling and steel production facility in Arkansas. Using machine learning models, the company is able to reduce outbound transportation costs while optimizing delivery windows for its customers.
Problem:
"Steel mills built between the 1970s and 2010 handle their business on spreadsheets and laptops. But the operation of steel mills is just as dependent on math and metrics as any other business, and spreadsheets just can’t handle complex interrelated variables. Spreadsheets are also static in a very quickly changing business world.
According to Big River Steel’s CEO, David Stickler: 'We started by examining the financial spread between the price of scrap steel and finished steel. Many mill operators view scrap steel as a financial risk, we saw it as an opportunity – apply AI to improve profit per mill hour by starting at the very beginning of the process'."