Supply chain · Production

Hexion uses Celonis Process Intelligence to tackle supply chain disruptions and free millions in working capital

The problem

Hexion's global supply chain faced extreme pressure from COVID-19, logistics disruptions, storms, and material shortages, while the complexity of their process and IT landscape made it nearly impossible to identify root causes in a data-driven way or quantify how disruptions in one process rippled into adjacent ones.

Workflow diagram · grounded in source
1
Process Intelligence Platform analysis
ai_action
“Hexion is maximizing performance across five of their core processes with the Celonis Process Intelligence Platform: Order-to-Cash, Procure-to-Pay, Accounts Payable, Accounts Receivable, and Production Planning”
2
Order-to-Cash variant discovery
ai_action
“With Celonis, we found 10,000 different variants in our Order-to-Cash process”
3
Shipping delay order alerts
output
“Hexion's teams also get notified about any blocks on orders that are at risk of a shipping delay”
4
Production Planning change alerts
output
“our schedulers get alerts for last-minute order changes and can take immediate action to avoid delays”
5
Customer payment prediction
ai_action
“we can now predict more accurately whether our customers are likely to pay us on time and, if not, receive early alerts to cut down payment delays”
6
Daily collections invoice overview
output
“her team now has a daily overview of all invoices due within the next few days and can proactively drive collections”
Reported outcome

Celonis delivered a 50% reduction in days to pay for supplier financing equating to several million dollars in working capital freed, a 50% decrease in unearned cash discounts paid out, a 45% drop in route changes, and a 6-day improvement cutting credit hold release to shipment time from approximately 11 to five days.

Reported metrics
Days to pay for supplier financing50%
Working capital reductionseveral million dollars
Unearned cash discounts paid out50%
Route changes from production to customer45%
Show all 6 reported metrics
days to pay for supplier financing50%
working capital reductionseveral million dollars
unearned cash discounts paid out50%
route changes from production to customer45%
credit hold release to shipment improvement6-day improvement
credit hold release to shipment (before/after)from approximately 11 to five days
Reported stack
CelonisCelonis Process Intelligence PlatformAction FlowsERP
Source
https://www.celonis.com/solutions/stories/hexion-supply-chain-process-mining
Read source ↗

Frequently asked questions

What did this team achieve with this AI workflow?

Celonis delivered a 50% reduction in days to pay for supplier financing equating to several million dollars in working capital freed, a 50% decrease in unearned cash discounts paid out, a 45% drop in route changes, an…

What tools did this team use?

Celonis, Celonis Process Intelligence Platform, Action Flows, ERP.

What results were reported?

Days to pay for supplier financing: 50%; Working capital reduction: several million dollars; Unearned cash discounts paid out: 50%; Route changes from production to customer: 45% (source-reported, not independently verified).

How is this supply chain AI workflow structured?

Process Intelligence Platform analysis → Order-to-Cash variant discovery → Shipping delay order alerts → Production Planning change alerts → Customer payment prediction → Daily collections invoice overview.

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