Industrial Wire Distributor Doubles Inventory Turns with Supply Chain Digital Twin on Azure

Excess stock ties up working capital. This mid-market industrial wire distributor, operating 12 warehouses and managing over 6,000 SKUs, faced a data quality problem: years of poor order routing had degraded the historical data inside their ERP. The system's item/site classification rules, built on that corrupted history, misallocated stock — signaling replenishment at locations with no real demand. Stockouts and overstock coexisted across the network, purchasing decisions were strained, and management lacked the insights needed for informed decision-making.

Persepta deployed its Inventory & Network Optimization Solution Accelerator as a Supply Chain Digital Twin built on Microsoft Azure and Microsoft Fabric. The solution created an optimized virtual replica of the business to support smarter inventory purchasing decisions rather than relying on historical data from inefficient order routing. Optimization models ran against the digital twin so supply chain personnel could simulate inventory strategies and business impacts before implementing strategic decisions at scale. Automated intelligent order routing, driven by the optimized twin, improves the historical data so it better reflects true demand. The implementation was scoped to fit a reasonable IT consulting budget.

The distributor doubled inventory turns across its full 12-warehouse network — a step-change in working capital efficiency. Inventory placement was realigned to actual demand patterns rather than the corrupted ERP signals that had driven misallocation for years. Purchasing decisions previously strained by unreliable system recommendations became more automated and accurate, reducing workload on key supply chain personnel.

Key outcomes:

• 2x inventory turns across the 12-warehouse network
• Optimized inventory levels — stock repositioned to match true site demand
• Reduced working capital costs through leaner, better-positioned inventory
• Streamlined purchasing workflow — automation reduced manual decision burden on the supply chain team

• Corrupted ERP history can lead to incorrect inventory placement in multi-site distribution; a digital twin can support smarter purchasing decisions than relying on that flawed history.
• Simulation-first decision-making lets supply chain teams test inventory strategies before implementing decisions at scale.
• Automated intelligent order routing guided by a digital twin can improve the value of historical data so it better reflects true demand.
• Azure-based digital twin solutions can deliver optimization benefits within a reasonable IT consulting budget.