Forecasting Analytics Solutions Helped an Automobile Manufacturer Cut Down Operational Costs by 8%

May 18, 2021

Engagement Summary

Due to the onset of the global pandemic, automobile industry players suffered from halted production and disrupted supply chains that brought a decade of expansion in the global industry to an abrupt halt. The automobile industry’s resurgence in 2021 is marked by reinvention and digitization to adapt to the new normal.

In this success story, Quantzig helped a Japanese automobile manufacturer improve their profit margins and devise a predictive demand forecasting plan backed by forecasting analytics. Quantzig’s forecasting analytics solutions also helped to improve business efficiency and outgrow competitors.

Every business now needs to incorporate data-driven demand and supply forecasting techniques to adapt to the rapidly changing automobile market condition. Request a free proposal to more about our forecasting analytics capabilities.

The Client

The client is a Japanese multinational corporation, and they are one of the largest manufacturers of motorcycles, motorcycle engines, heavy machinery, aerospace equipment, and industrial products. They are headquartered in Hiroshima, Japan.

Request a free pilot to know more about how forecasting analytics can help you gain actionable insights to streamline business operations.

Business Challenge

The client was using a traditional demand forecasting model that was not providing them with data-backed, actionable insights. This conventional demand forecasting model was frequently causing them losses in their profit margin due to the backorders and overstock occurrences of parts. They were in requirement of a precise production planning process in place.

The key challenges faced by the client were-

  1. Inaccurate demand and supply forecasting – The existing demand and supply forecasting model was not powered by forecasting analytics; leading to inefficiencies in inventory planning, backorders, and overstocking.
  2. Inventory replenishment plan – The client also needed a predictive demand forecasting plan for accurate inventory replenishment to keep inventory holding and management costs at a minimum.

Solution Offered

Quantzig’s production planning and forecasting analytics experts helped the client revamp their demand and supply forecasting strategy with a predictive demand forecasting strategy.  This strategy allowed the client to analyze the evolving demands in the global automobile market. Furthermore provided solutions to tackle the challenges that were arising due to the conventional demand and supply forecasting model. Quantzig’s experts helped this client gain data-driven, actionable insights into the factors responsible for the sudden surge and dips in demand. This allowed the client to create a lean yet adequate inventory plan.

We, at Quantzig, help businesses with fast and appropriate decision-making. Our forecasting analytics solutions have previously helped leading Fortune 500 companies to drive positive outcomes and stay future-ready. Contact us to know more.

Business Outcome

With Quantzig’s forecasting analytics solutions, the automobile manufacturing client could adapt to the rapidly changing market conditions and develop an analytics-driven inventory replenishment and management plan. The predictive forecasting analytics solutions provided by Quantzig also helped the client redefine their production and distribution processes. The other significant business outcomes were –

  1. Reduced operational costs by 8%
  2. Profit margins increased by 27%
  3. Derived a forecasting analytics-based demand-supply plan

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