Demand Forecasting and Advanced Analytics Solutions Helped a German Automotive Company Increase Profit Margins by 12%

May 21, 2021

Engagement Summary

The pandemic has had a swift and severe impact on the global automotive industry. Most automotive industry players are under immense pressure to redesign and reshape their supply chain strategies to gain a competitive advantage, cope with the downshift in global demand, and cut unnecessary costs.

In this success story, a German automotive industry giant collaborated with Quantzig to address unforeseen fluctuations in demand and supply and cut on unnecessary expenses incurred.

To address the challenges associated with production and supply processes, automotive companies worldwide are making use of analytics-driven demand forecasting solutions. Request a free proposal to know more about our demand forecasting solutions curated for the automotive industry.

About the Client

The client is a pioneer in the multi-utility automotive segment. They are headquartered in Berlin and have production hubs across Germany, Brazil, South Africa, the USA, and England.

Request for more information to know how we can help you to improve your sales forecast accuracy and increase profit margins.

Business Challenge

The major challenge that the client was facing was the rapid change in market conditions due to technological advancements. The client’s competitors were quickly adapting to the new normal and embracing technical innovations and advancements.

They were also facing problems with an increasing number of unfulfilled orders resulting from the existing inaccurate demand forecasting model. The client collaborated with Quantzig to replace their existing demand supply forecasting model with a data-driven demand forecasting model.

The primary challenges faced by the automotive manufacturer included –

  1. Adapting to the swiftly changing marketplace – The client wanted to keep up with the evolving automotive marketplace and cater to the demands of their global customer base.
  2. Develop a lean inventory replenishment plan – The client wanted to develop an efficient inventory replenishment and management plan to reduce unnecessary expenses and product delays.
  3. Reduce product obsolescence cost – With demand being driven by changing customer preferences and needs, the client experienced a significant rise in obsolete inventory and decreased profit margins.

Automotive companies now incorporate lean and robust production and distribution plans to keep pace with the rapidly changing customer preferences. Speak with our experts to leverage our demand forecasting solutions.

Solution Offered

Quantzig’s SMEs helped the client redesign their conventional demand forecasting strategy by making use of data-drivan, actionable insights. Our experts helped the client analyze the evolving and growing demands in the market and resolve the frequent production and distribution mismatch issues.We also helped the client gain comprehensive insights into the factors responsible for the changing demand trends, which in turn helped them maintain an adequate inventory.

Business Outcome

With Quantzig’s demand forecasting solution, the client could adapt quickly to the fast-changing market conditions and develop a robust inventory replenishment plan. The primary business outcomes were –

  1. Rearrange production process and supply model
  2. Increase in profit margins by 12% in one year
  3. Saved operational and inventory management costs

Quantzig allows automotive industry players gain a holistic view of their customers expectations and validate sales and production plans. Request a free pilot to know more about our solutions curated for the automotive industry.

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