Optimizing CAPEX with a GenAI ChatBot: A Maritime Logistics Story

Business Opportunity

GenAI Chatbot for Predictive Analytics

Our client is one of the largest global lessors of shipping containers. They are a valued business partner to the shipping industry, helping to strategically manage existing fleets and optimize the capacity without costly inventory. The client offers leasing arrangements and advises on the right leasing option suitable to supply-chain demand. They were looking to reduce capital expenditure, by gaining a way to time their purchases during more advantageous times. 

We helped the client build a GenAI chatbot to enhance its purchasing strategy and reduce CAPEX. This advanced tool analyzes a range of historic market data from their SAP system, including raw material costs, interest rates, and exchange rates to forecast the best times for container purchases. By presenting price trends and predictions in a clear, user-friendly format, the chatbot will help the client make informed decisions and optimize spending.

The Challenge

The client buys containers throughout the year, with several factors influencing pricing, including the cost of raw materials, seasonal prices, interest and exchange rates, labor costs, political conditions, etc. Their purchasing decision was influenced by their internal Capex data stored on their SAP system. 

With the Niveus chatbot powered by GenAI, the client was looking to optimize CAPEX throughout the year by adopting a predictive model to improve investment timing. The goal of our implementation was to reduce costs by:

• Enhancing negotiation power through quick, user-friendly market intelligence
• Providing cost predictions for the next five purchasing cycles to secure the best prices

Our Solution

We built a solution where the chatbot provides price predictions using the GENAI Times FM model, leveraging historical SAP-PO data for accurate forecasting. Additionally, the chatbot allows users to query and retrieve historical price data and other relevant information, making it easy to access key insights for decision-making. 

The approach is both straightforward and cost-effective. After preprocessing the data, the TimesFM model forecasts values from the 10th to the 90th percentile, with the 90th percentile closely matching actual values. 

Using data from 2007 to 2020, forecasts were made for 60 future points (Jan 2021 to Dec 2025), with results stored in BigQuery under “TimesFM_forecasted_result”. For natural language to SQL conversion, a backend service was built with Python. The Gemini 1.0 Pro model generates SQL queries, and Gemini 1.5 Pro converts the results into natural language responses.

Benefits of Developing GenAI Solutions with Niveus

• Enhanced Customer Engagement: Niveus GenAI chatbots offer personalized, real-time interactions, leading to higher customer satisfaction. They use advanced AI to understand and respond to customer queries in natural language, making conversations seamless and engaging.
• Scalability: Niveus GenAI chatbots are built to handle increasing volumes of customer interactions without compromising on quality or response time. Whether handling thousands or millions of queries, our chatbots scale effortlessly with your business needs.
• Data-Driven Insights: With built-in analytics and reporting, Niveus GenAI chatbots provide businesses with valuable data on customer behavior and preferences. This enables better decision-making and the ability to tailor products, services, and marketing strategies accordingly.
• Seamless Integration: Niveus GenAI chatbots integrate effortlessly with existing systems like CRM, ERP, and other customer support platforms. This allows businesses to maintain a unified customer service experience across channels and touchpoints.
• Continuous Learning and Improvement: Powered by machine learning, Niveus GenAI chatbots improve over time by learning from past interactions. This continuous refinement ensures more accurate responses and better customer satisfaction as the chatbot adapts to changing trends and needs.

Results

• 93% Accuracy Historical Data Retrieval: Our solution achieved a 93% accuracy rate in retrieving historical data, ensuring reliable access to past insights for informed decision-making.
• 78% Forecasting Accuracy: With 78% accuracy in forecasts, the predictive model provides valuable insights into future price trends, helping optimize purchasing strategies.
• Cost Optimization: The high accuracy of the forecasts allows the client to make more informed purchasing decisions, helping to reduce overall CAPEX and secure better pricing.
• Data-Driven Decisions: The ability to predict future prices with 78% accuracy enables the client to strategically time its purchases, maximizing savings and minimizing risk.
• Improved Negotiation Power: Access to accurate price predictions strengthens the client’s ability to negotiate better deals with suppliers.
• Enhanced Efficiency: By automating forecasting and simplifying data access, the solution saves time and resources, allowing teams to focus on higher-level strategic tasks.
• Increased Confidence: Reliable insights foster greater trust in decision-making processes, encouraging a more proactive and forward-thinking approach to managing expenditures.

Power of Partnership

At Niveus, we believe that a successful partnership is built on collaboration, expertise, and a shared vision for growth. Our extensive experience in cloud solutions, AI-driven insights, and data engineering allows us to bring cutting-edge technology and industry best practices to the table. We worked closely with the client to design a tailored solution that met immediate needs and also provided an avenue to future-proof their operations. 

By integrating advanced models like the GENAI Times FM model and automating complex processes, Niveus helps organizations optimize costs, enhance efficiency, and unlock new opportunities for innovation. We take pride in being a trusted partner, guiding our clients through every stage of their digital transformation journey.