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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

Established in 1975, this leading Indian industrial lubricant manufacturer has built a strong nationwide presence with a state-of-the-art production facility in Silvassa and strategically located warehouses in Silvassa, Gurugram, and Chennai. Over the years, the company has served a diverse customer base across automotive, industrial, and OEM sectors. However, with growing SKU complexity and customer expectations, they began experiencing significant challenges in managing inventory across their supply chain.

Maintaining the right stock levels—balancing product availability without overstocking—proved difficult across both manufacturing and warehousing operations. These issues led to inefficiencies such as stockouts, excess inventory, delayed order fulfillment, and rising holding costs. The traditional forecasting and planning approaches in place were not equipped to handle evolving demand patterns, SKU proliferation, or shifts in customer behavior.

To address these challenges, the company partnered with Translytics, a supply chain analytics firm known for its AI-driven demand planning solutions. By leveraging Translytics’s cutting-edge demand analysis and demand modeling algorithms, they embarked on a data-driven transformation journey that yielded measurable results.

INR 51Lakhs +

 Saving through Demand Supply Analysis

20% 14% and 52%

Inventory cost reduction Across three warehouses

Areas of Focus

The Translytics team worked closely with the customer to identify core pain points in their operations. Through a detailed data-driven approach and collaborative discussions, the following critical focus areas were uncovered:
  • Excessively high SKU count:
    • 106 inactive SKUs
    • 49 SKUs with zero sales
  • New product development (NPD) prioritizing niche customers, leading to an increase in low-selling SKUs
  • Overall low gross profit margins across the portfolio
  • Mismatch between physical stock and system-recorded inventory
  • Approximately 54% of SKUs were non-revenue generating
  • Poor sales conversion rates affecting profitability
  • Unclear segmentation between Make-to-Stock (MTS) and Make-to-Order (MTO) strategies
  • Frequent daily backorders, despite having excess inventory for certain SKUs
  • Prolonged stockout periods for select high-demand 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 successfully implementing the demand analysis and modeling solution, the customer experienced significant improvements, including:

  • Estimated annual savings of ₹51 Lakhs through optimized demand analysis.
  • Inventory cost reduction of 20%, 14%, and 52% across three key warehouses.
  • Enhanced inventory tracking with the Perpetual Inventory Audit Tool, ensuring real-time stock accuracy and minimizing discrepancies.

These improvements led to cost efficiency, better inventory control, and streamlined operations, driving long-term business growth.

Through our AI-driven demand planning services, Translytics enabled a leading industrial lubricant producer to streamline operations and improve forecast accuracy. This case study demonstrates the critical role of SKU rationalization and predictive modeling in achieving supply chain efficiency. Learn more about the importance of demand modeling in manufacturing from this Gartner article.

Company

Leading Industrial Lubricant Producer ​

Industry

Lubricants​

Shipping Network

PAN India

Association Year

2022

Focused Area

Demand Analysis & Modeling