AI-Powered Supply Chain: Luminovo's Sebastian Schaal Interview

Discover how artificial intelligence is revolutionizing the electronics supply chain in this in-depth interview with Sebastian Schaal, founder and managing director of Luminovo. From his journey at Stanford to building a comprehensive supply chain platform, Sebastian shares insights on automation, tariff impacts, and the future of electronics manufacturing.

Learn how Luminovo is helping OEMs and EMS companies move beyond Excel spreadsheets to AI-driven solutions that provide real-time pricing, supply chain transparency, and collaborative workflows. Sebastian discusses the challenges of global supply chains, the effects of COVID-19 and recent tariffs, and why reshoring is becoming critical for resilience.

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Key Highlights

• Luminovo offers a cloud-native, electronics-first platform that digitizes and automates the entire supply chain, from design to sourcing to contracting, serving both OEMs and EMS companies with real-time data, quoting tools, and strategic sourcing capabilities.

• Collaboration and data integration are central to Luminovo’s value, enabling internal teams and external partners (suppliers, customers) to work seamlessly via shared interfaces, structured workflows, and live digital twins, eliminating reliance on spreadsheets and email.

• AI and automation are foundational to the platform, with rule-based and machine learning-driven systems powering parsing, pricing, and sourcing tasks, while new capabilities like LLM-powered interfaces are transforming user experience and accelerating innovation.

• Global supply chain shifts, including reshoring, tariffs, and post-COVID volatility, have driven demand for resilient, real-time tools like Luminovo that empower electronics companies to manage risks, reduce dependency on spreadsheets, and respond proactively to market disruptions.

Transcript

James Sweetlove: Hi everyone, this is James from the Ctrl+Listen Podcast, brought to you by Octopart. Today we have a special guest for you, Sebastian Schaal, founder and managing director of Luminovo. They're an electronic supply chain platform, but much more than that. Welcome to the show. Thanks for coming on.

Sebastian Schaal: Thank you so much for having me, James.

James: Anytime. Just to start, I think we should maybe talk about Luminovo's origin story, the background of the company. Do you wanna tell us a little bit about that?

Sebastian: Yeah, sure. It kind of starts with my co-founder Timon and I. We met during our time at Stanford. We were EE graduates, and around 2015–2017 got into artificial intelligence, not the current wave, but the one before. We were on Fulbright scholarships, so we took what we learned in the Valley back to Germany. We founded the company there, originally as an AI solutions boutique. We built custom software with AI under the hood for German industrial companies like Daimler, Volkswagen, BMW, and Infineon. That was fun, our first phase.

We always wanted to build a real software company and a product we could nurture for 10-20 years. Since we're both electrical engineers and had this new tool of software automation, we felt the electronic supply chain was the perfect space, an industry that’s only going to grow more important. Our project with Infineon taught us a lot: automation was progressing on the chip level and in EDA, but at the board level, the supply chain was still messy. A lot of email and Excel. That felt like the true bottleneck. That’s where we knew we could help with modern software. So we set out to build a suite to help bring products to life faster, cheaper, and more sustainably.

James: Love it. I'm glad you were able to pivot like that. A lot of companies struggle to make those changes. Let’s talk about the product. What are your main use cases and product offerings?

Sebastian: We’re catering to the whole supply chain, but our key stakeholders are EMS companies and OEMs. For OEMs, we help reduce cost and risk in electronic design. For EMS companies, it’s about winning more manufacturing deals and improving margins.

James: For anyone unfamiliar, can you explain the difference between an OEM and an EMS?

Sebastian: Sure. In electronics, OEMs are design companies that hold the IP and bring products to market. Some manufacture in-house, some outsource. EMS companies started as contract manufacturers doing PCB assembly. Today, they aim to be full-service partners, offering vertical integration, supply chain, and lifecycle services.

James: Thank you, that was very clear. So how do your solutions differ for OEMs vs EMS companies?

Sebastian: Both go through quoting, sourcing, supply chain management, and lifecycle compliance. For OEMs, we help early in the design phase, say, when using Altium. As soon as you have a BOM or PCB, you can bring it into Luminovo. You get cost estimates with actual prices, not just list prices. We combine internal business data with supplier pricing. OEMs can then manage sourcing, risk, and pricing across their whole design portfolio.

For EMS companies, quoting is the entry point. They receive BOMs in messy formats, and our tools help parse, cost, and calculate margins efficiently. We automate costing, labor estimates, and offer tools to manage both project and portfolio-level sourcing.

James: You brought up data. Where does your data come from?

Sebastian: We aggregate data from manufacturers, data providers like IHS and SiliconExpert, APIs from Altium and Octopart, and over 50 distributors. We unify that into a best-of-breed dataset. We also integrate customers’ ERP/PLM systems to connect internal data with the global view. This helps turn static ERP text into living supply chain insights.

James: That’s a lot of moving parts. What would you say sets Luminovo apart from competitors?

Sebastian: We’re electronics-first. Generic tools like ERP or SRM were built for mechanical industries. Electronics teams often end up working in Excel. We offer a platform purpose-built for electronics, bringing together sales, procurement, and lifecycle tools in one suite. Customers also tell us we’re user-friendly. We treat PCBs as first-class citizens and offer real-time offers, AI capabilities, and advanced collaboration tools.

James: Speaking of features, can you explain your "source to contract" functionality?

Sebastian: It’s about moving from project-based sourcing to strategic sourcing. OEMs can use the tool to aggregate demand, negotiate contracts, define category strategies, and track market signals. It helps them manage sourcing decisions from portfolio level down to individual parts, and pass that intelligence to EMS partners.

James: Let’s talk about collaboration. How does your platform support it?

Sebastian: Internally, EMS teams with complex quoting workflows can tag colleagues, manage tasks, and track progress in one suite. Externally, we offer supplier portals for bidding, customer collaboration via self-service quoting portals, and live digital twins for feedback. We bridge gaps between engineers working in design tools and procurement working in ERP.

James: Let’s move to AI. How has automation and AI benefited your company? What's next?

Sebastian: We’ve always built automation in, from rule-based workflows to machine learning for parsing BOMs and files. Now, large language models unlock new user experiences, like chat interfaces and Copilot-style guidance. We’re rethinking all our screens to take advantage of this shift in UX. You need to adapt or risk becoming outdated, just like legacy ERP tools.

James: It’s evolving fast. So how do integrations work in Luminovo?

Sebastian: We offer integrations for product/component data (from ERP/PLM), CRM workflows (like syncing opportunities), and supplier systems (for pricing, RFQs). We also connect with over 50 distributors and 15+ PCB suppliers for real-time data. And we pull in data providers like Nexar for enriched component info.

James: You’ve recently expanded into the US. How’s that going?

Sebastian: It’s going very well. We realized we had to go all in, so we opened a US entity, hired local staff, and ramped up sales and marketing. We’ve seen strong growth, adding 10-15 new logos this quarter alone. The US market is greener than Europe, and many still use Excel for supply chains. We also support mixed PCB/assembly businesses better than anyone. Our total cost of ownership module with tariff support hit the market just as new tariffs were announced, so the timing worked well.

James: Speaking of tariffs, how have they affected the global supply chain?

Sebastian: Short term, some companies are building US footprints; others are pulling back due to risk. Many are in "wait-and-see" mode. Some EMS companies will benefit with more orders. But we have to avoid bullwhip effects, especially with labor. On the component side, shifting production might cause new shortages.

James: What about the impact of COVID?

Sebastian: COVID turned the supply chain from static to dynamic. Stock availability is no longer predictable. Prices fluctuate wildly. Obsolescence isn’t the only risk anymore. This led to panic buying and a bullwhip effect. We need real-time supply chain tools to help companies act based on facts, not fear.

James: We’ve also seen a big push toward reshoring and nearshoring. Is that a lasting trend?

Sebastian: Yes. "Local for local" is the new norm. It's driven by risk, resilience, and environmental concerns. People want to decouple and build regional supply chains. That takes time, but it’s happening. Ultimately, supply chain strategies will resemble diversified investment portfolios, some local, some global, all managed with resilience in mind.

James: That makes total sense. If people want to keep up with Luminovo and what you’re building, where should they go?

Sebastian: Visit luminovo.com. You can also connect with me on LinkedIn, Sebastian Schaal, or email me at sebastian@luminovo.com. We keep our events calendar updated and love meeting people at shows.

James: Sebastian, thank you so much, this has been incredibly insightful.

Sebastian: Thank you so much, James. Always a pleasure to be on the show.