IFS: Strengthening Supply Chain Resilience With AI Pricing

A new pricing model from IFS could reshape how supply chain and procurement teams deploy artificial intelligence (AI) across their operations, offering greater cost predictability and operational flexibility in an increasingly volatile business environment.

IFS is introducing a pricing approach that could fundamentally alter how organisations purchase and implement AI technology throughout their supply chain operations.

The shift comes as procurement and supply chain leaders face mounting pressure to balance cost control with the need for operational resilience.

The implementation of AI has grown exponentially, yet many supply chain organisations have faced concerns about inconsistent costs and unpredictable spending. IFS is working to tackle these challenges in order to make AI adoption more streamlined across procurement and supply chain functions.

Asset-based pricing for supply chains

IFS is one of the world's leading providers of industrial AI across businesses, helping organisations unlock value and transform their operations. The company serves businesses which maintain complex assets, manage service-focused operations and manufacture goods, enabling them to increase productivity, efficiency and sustainability across their workflow.

IFS.ai is designed to be fully flexible and adaptable to customer requirements, utilising machine learning, real-time data and analytics to help business leaders make informed and strategic decisions across their supply chain networks.

The new pricing model changes how AI technology is made available and adopted across supply chain operations. The requirement for businesses to adapt and remain flexible has become more apparent. With constant market turbulence and ongoing geopolitical volatility, supply chain leaders are working to ensure resilience across their operations.

The roles of procurement and supply chain leadership have evolved significantly. It is no longer sufficient to focus solely on cost savings – today's leaders are vital in sourcing stable and resilient suppliers, playing a more visible role in business success than ever before. With this increase in demand, leaders have turned to AI to gain more detailed insights into supplier operations and supply chain risk, but some organisations are still failing to see the benefit of this tool due to cost concerns.

Some supply chain leaders remain reluctant when purchasing AI tools, concerned about rising costs or limits to capabilities. To address this, IFS has announced its pricing model which enables organisations to deploy Industrial AI wherever it creates value across their supply chain, without constraint or extra costs.

"This is a clear message to our customers: rather than rationing users, IFS wants you using AI everywhere you can to create value," says Mark Moffat, CEO at IFS.

"Our customers should not have to choose between automating their operations and controlling their software costs. This progressive move on pricing removes that trade-off entirely.

"We're not pricing the workers. We're pricing the work."

Operational reality

Traditional enterprise software pricing models charge per user, but IFS is moving away from user-based licensing to a model which is more grounded in operational reality. According to the company, customers can now pay by assets instead of by users. If a supply chain organisation has 12,000 people and machines but only 400 assets, it now pays for those assets rather than bearing the cost of employee headcount.

This approach could provide supply chain teams with greater confidence in their costs, knowing that spending aligns with operations rather than facing uncertain expenses. Due to this structure, organisations can expand their supply chain projects and grow their operations without worrying about the added costs of user-based licensing. Instead of being person-specific, the model aligns software investment with the assets that are manufactured, managed and maintained – including vessels, components and infrastructure.

This could make AI more accessible for supply chain operations, as it offers a more predictable cost structure rather than fluctuating with staff numbers or organisational changes.

"IFS moving into the next realm of pricing means buyers have flexibility in the Agentic world," says Mickey North Rizza, Group Vice President, Enterprise Software at International Data Corporation (IDC).

"IFS new pricing model helps companies operationally scale their investment to the value levers it needs to run the business. This new methodology will help clients sustain their economic value."

Scaling supply chain capabilities

Every supply chain organisation is having to adapt to changing global demands, but cost constraints should not limit operational capability. As pressures to do more with less increase, industrial organisations face a crossroads. They have the potential to expand what they are capable of producing, maintaining and delivering through Industrial AI, but the limits of cost have been impacting these businesses and their supply chain resilience.

Through its pricing model, IFS could allow supply chain workers to do more by directly driving work and outcomes. The approach is designed for industrial systems of action, helping drive greater value for customers operating complex supply chains. Through measurable, auditable and transparent metrics, IFS is working to help businesses meet their expansion goals without the added costs that traditionally accompany supply chain technology adoption.

Aly Pinder Jr, Research VP, Aftermarket Services Strategies at IDC, adds: "Asset-centric organisations have made the shift to expect to work with technology vendors that can align the partnership in a way for shared benefit and flexibility enabling growth as market conditions evolve."

The evolution in pricing allows IFS to expand its own Industrial AI strategy, working to meet the changing demands of supply chain operations. As customers navigate an increasingly AI-driven industrial landscape, IFS aims to help supply chain and procurement teams capitalise on new opportunities while maintaining cost predictability.

Through its pricing model, IFS is working to help procurement leaders strengthen supply chain resilience while managing constrained budgets more effectively.