Take IFF’s in-development approach to activity-based costing across a complex range of activities. In formulation manufacturing, for example, AI models, in conjunction with LLMs, help break down formulation instructions into all the component processes involved: chemical processes, physical processes, and others. These models then assign costing based on variables like location of manufacturing, batch size and materials needed.
According to Alexander Manasson, Director of Data Science for NA and LATAM Operations, “This helps us identify where the big costs are and helps us pinpoint where we reduce costs to translate into reduced prices for consumers.”
While much recent media attention has focused on generative AI and LLMs, IFF also draws from a deep bench of statistical and machine learning models and optimization algorithms. These technologies allow IFF to take a data-driven approach to problem-solving, improving processes across production lines and global supply chains.
Predictive AI models for process and chemical control, for example, improve yield and throughput. As Manasson said, “This means we can cover, and deliver, to more customers faster.”
In the realm of supply chain, logistics and operations, advanced optimization algorithms help IFF increase fulfillment across a complex and large customer base. Mixed Integer Programming in the Dynamic Scheduling Optimization tool, for example, helps solve the notoriously tricky problems of optimizing production schedules based on real-time information. And linear programming in the Capacity Margin Optimization tool helps determine what product should be produced at what plant to ensure maximum satisfaction of customer demand.