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Demand Analysis and Demand Modeling Drive Prominent Industrial Lubricant Producer Towards Operational Efficiency

Success Stories

Translytics's advanced algorithm revolutionized a lubricant producer's supply chain, integrating demand analysis and modeling to streamline operations and improve efficiency
Demand Modelling

Demand Analysis and Demand Modeling Drive Prominent Industrial Lubricant Producer Towards Operational Efficiency

Summary

Founded in 1975, this prominent Indian industrial lubricants producer operates a manufacturing facility in Silvassa and three warehouses in Silvassa, Gurugram, and Chennai. Nevertheless, they encountered difficulties in maintaining appropriate inventory levels at both the manufacturing and warehouse levels. By leveraging Translytics’s demand analysis and demand modeling algorithm, they realized the following benefits:

INR 51Lakhs +

 Saving through Demand Supply Analysis

20% 14% and 52%

Inventory cost reduction Across three warehouses

Areas of Focus

Translytics team collaborated with the customer to understand their pain areas, upon data analysis and further discussion following focus areas were identified:
  • Excessively high SKU count
    • 106 inactive SKUs
    • 49 no sale SKUs
  • NPD prioritizes niche customers, boosting low-selling SKUs
  • Overall low Gross profit
  • Discrepancies between physical and system stocks
  • Around 54% items are non-revenue generating items
  • Low sales conversion rate
  • Choosing between MTS and MTO strategies for products
  • Daily backorder but excess inventory for some SKUs
  • High stockout period for some SKUs

Solution Approach

Based on customer requirements and pain points, Translytics employed advanced demand modeling algorithms and analytics services for an in-depth analysis in the following areas:
  • SKU and customer analysis to identify demand pattern
  • Sample to sales conversion analysis
  • ABC and Volatility analysis of the available SKUs
  • Inventory analysis and daily order analysis for all SKUs
  • Development of Perpetual Inventory- Inventory Audit Tool
  • Demand Variance analysis
  • Inventory Stock out rate analysis
  • Analysis of the production changeover data to resolve the MTO vs MTS conflict

Impact

After the solution models were completed and implemented, the customer experienced the following advantages:
  • Possible savings through demand analysis ~51 Lakhs INR, Annually
  • Inventory cost reduction by 20%, 14% and 52% across three warehouses
  • Perpetual Inventory Audit Tool Implementation

Company

Leading Industrial Lubricant Producer ​

Industry

Lubricants​

Shipping Network

PAN India

Association Year

2022

Focused Area

Demand Analysis & Modeling