Forecasting Aftermarket Parts for a $4B Global Automotive and Industrial Parts Manufacturer
Client Background & Challenges
SSA was asked to identify opportunities to improve the forecasting and demand process for future integration with the supply planning transformation and technology enablement project currently in progress.
Approach & Analysis
The assessment yielded a list of opportunities which included definition of roles and responsibilities, set up of a more formal demand planning process for gathering demand signals, and increased utilization of existing technology tools for analytics, aggregation/disaggregation, and statistical forecasting.
Results & Value to Client
Estimated benefits of these improvements were up to 8% improvement in forecast accuracy, increase in inventory turns by 1 through improved forecasting, and reduction in inventory by $10M over 3 years through improved demand planning and forecasting and reduction in costs by $5M over the same period.
Related Capabilities and Expertise:
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