AI-Based Inventory Optimization Finally Done Right: Our Investment in Verusen

The average Fortune 500 manufacturer has anywhere from $40-60M annually in wasted working capital each year due to the costs of carrying excess inventory and inefficient purchasing decisions. Naturally, with better working capital management, manufacturers can unlock tens of millions of dollars in cash that companies can reinvest in other areas of the business. While there are various solutions for inventory optimization available in the market today, these solutions have so far been inadequate to meet the vision of true inventory optimization because of one fundamental reason: their predictive models run on dirty data, which makes their recommended inventory forecasts inaccurate and far from optimized. As the saying goes, “garbage in, garbage out.” Historically, in the world of inventory optimization solutions, which are fed the garbage of dirty data, the result has consistently been garbage out. That is, until now.

Entering the scene as the new game-changing upstart, Verusen is taking a novel data-centric approach that we at BMW i Ventures believe will disrupt how companies manage their inventory levels. Recognizing the bane of the dirty data problem that has plagued inventory optimization solutions in the past, Verusen’s solution takes a two-pronged approach that utilizes best-in-class AI techniques to streamline the cleaning of duplicate and erroneous data entries that can drive inaccurate inventory forecasts. Taking in this cleaned data, Verusen’s platform then uses AI-based predictive models to recommend the right inventory levels, so that customers can usher in the next generation of agile and efficient supply chain management.

We at BMW i Ventures are thrilled to announce our investment in the Series A financing of the Verusen. We believe that Verusen’s solution brings the industry one step closer to realizing the vision of the connected supply chain, which uses the power of data and other digital technologies to create better transparency and visibility across the supply chain to improve overall business operations. We’re excited about the benefits of Verusen’s solution not merely for the automotive supply chain but any industry that must deal with the pains of inventory management.

As big believers in AI-based applications, we witnessed the proof and might of Verusen’s platform in the savings it delivered to its customers. With large customers including Georgia Pacific, Graphic Packaging, and ABinBev, Verusen has been able to deliver on average tens of millions of dollars in verified savings opportunities for its customers with the first 90 days of deployment. For some customers, the savings delivered have been over $50M upon full implementation. Additionally, with Verusen, manufacturers seeking to implement an inventory optimization project no longer have to wait the 1-2 years of wasted time spent on cleaning data and then figuring out the right inventory forecasts. Verusen’s platform is the one-stop solution for both data cleaning and inventory planning needs, delivering results within the first few months—not years.  

In Verusen’s Series A financing, we join the Company along with investors Flyover Capital, Glasswing Ventures, Zetta Venture Partners, and Forté Ventures. We’re extremely excited to join Verusen in the mission to usher in the true vision of the connected supply chain across industry.