Demand forecasting and inventory management delivers USD 67 million in revenues for switchgear manufacturer

Sep 23, 2016

Business Challenge:

Improving demand forecasting for better inventory management

A US based switchgear manufacturer was facing issues with ability to conduct demand forecasting and assess the optimal volumes of products to be manufactured.


Lack of sales data integration and demand forecasting

The client sold its products through a number of distributors across the country, and received sales data from them in varying formats. Client did not have a process of integrating various types of information and creating optimal demand forecast. As a result of this, client was did not have accurate inventory levels, and was losing out on a lot of market, while competitors were quickly rising to encroach its market space.


Demand Forecasting and Inventory Management Model

We used a single platform based solution to initially convert all existing sales data into similar format, based on products, customers/retailers, purchase patterns, seasonal trends etc., and identified KPIs. We then used regression and predictive models to devise a robust demand forecasting and inventory management model.


USD 67 million revenues and recapturing of lost market share

Client utilized our inventory management solutions to improve its manufacturing and stock levels. The client was able to gain back 15% of the lost market share in 10 months, and increase revenues by USD 67 million.

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