Demand forecasting cuts inventory by 29%
Target Audience
Manufacturing distributors, supply chain managers, operations executives
Challenge
Specialty Bolt & Screw (SBS), a fastener manufacturer with 200+ employees across 20 global locations, struggled with excessive inventory from inaccurate forecasting. Managing 15,000+ stock keeping units (SKU) with 3-5 month lead times from Asia using manual, outdated systems meant the company couldn't capture rapid demand changes effectively.
Solution Approach
Leveraging an AI-driven supply chain platform, machine learning system provides SKU-level demand forecasting, automated safety stock recalibration (monthly vs. previously annual), and what-if scenario analysis. Full implementation completed in 12 months.
Value Add
SBS achieved a 29% reduction in inventory levels and 15% improvement in planner workload efficiency. The company freed significant working capital, decreased borrowing costs, and now has 60% of customers using the forecasting platform.
References
Specialty Bolt & Screw, RELEX Solutions
Read more here: https://www.relexsolutions.com/resources/case-study-specialty-bolt-and-screw/
Image credentials: Hoi An and Da Nang Photographer/ Unsplash
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