Operational Excellence

Artificial intelligence (AI) is changing the way we do business. Our global supply chain teams have developed advanced forecasting tools that integrate AI and machine learning (ML) with in-house expertise. These tools have led to better production planning, generating lower production costs and reducing inventory levels. Equally important, they have enabled us to improve customer service and reduce rush and expedited shipments.

AI and ML are essential to our Connected Factory program. Since its inception in 2019, this effort has revolutionized the way we connect our shop and enterprise systems, enabling real-time data availability for improved decision-making and reporting. Our teams delivered several projects in 2023–24, and have plans in place to further leverage digital capabilities and enhance operational efficiencies in the future.

The Connected Factory program now encompasses 32 manufacturing facilities and has realized $12.4 million in value over the last five years.

At Ingredion, we are constantly looking for new ways to increase our cost competitiveness. For instance, this year, we moved from internal metrics that tracked “on time in full” delivery to a metric that tracks “perfect order,” which is a higher standard of delivery. We have achieved well above 90% perfect order results, and our Net Promoter Scores reflect this achievement. At the same time, minimizing errors and rework has resulted in reduced inventory and faster inventory turns, which complements improvements in working capital and cash flow.

Our operations and procurement teams have played a pivotal role in driving operational excellence and cost competitiveness across the organization. Their focus on optimizing capacity utilization, streamlining supply chain processes, and implementing procurement-led cost-saving measures have increased efficiency and reduced expenses.