Value Chain Simulation: Industrial Gases – % Cost Distribution
This simulation compares the percentage cost distribution across key stages between Traditional and AI-Driven models (100% each).
Stage
Traditional (%)
AI-Driven (%)
Production
30%
20%
Storage
15%
10%
Distribution
25%
20%
Sales
20%
25%
Customer Service
10%
25%
Total
100%
100%
🔍 ABC Costing Model – % Distribution and Strategic Rationale
This table compares the cost structures by activity between Traditional and AI-Driven business models for each key customer segment.
Customer Segment
Order Processing
Logistics
Handling
Emergency Services
Trad.
AI
Trad.
AI
Trad.
AI
Trad.
AI
🏥 Hospitals
26%
18%
43%
35%
17%
22%
14%
25%
🔧 Welding Shops
19%
12%
67%
50%
10%
20%
4%
18%
🧠 Strategic Rationale
🏥 Hospitals: AI reduces manual order processing and delivery errors (↓ Order & Logistics), but increases predictive support and 24/7 digital monitoring (↑ Emergency & Handling %).
🔧 Welding Shops: AI drastically improves route optimization (↓ Logistics) and predictive maintenance scheduling (↓ Order Processing), but more automation shifts effort into smart inventory and client feedback cycles (↑ Handling & Emergency share).
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