Leading Industrial Lubricant Producer
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End to End Supply Chain Optimization Propel Prominent Industrial Lubricant Producer to Supply Chain Excellence
How Supply Chain Optimization
Lubricant Industry Drives Success
The supply chain optimization lubricant industry requires efficient planning to handle inventory fluctuations, high logistics costs, and complex distribution networks. A leading lubricant manufacturer partnered with Translytics to enhance operational efficiency and reduce costs.
Supply Chain Optimization
End to End Supply Chain Optimization Propel Prominent Industrial Lubricant Producer to Supply Chain Excellence
Summary
Founded in 1975, the company stands as one of India’s foremost industrial lubricants producers. Operating out of a state-of-the-art manufacturing facility in Silvassa, and strategically located warehouses in Silvassa, Gurugram, and Chennai, the company serves clients across the entire nation. Despite its extensive network, the company faced persistent challenges in maintaining optimal inventory levels at both the manufacturing and warehouse stages. These inventory imbalances led to inefficiencies in production scheduling, stockouts, and increased operational costs. Furthermore, the company struggled with managing the flow of raw materials and finished goods, causing delays in order fulfillment. By adopting Translytics’ End-to-End Supply Chain Optimization algorithm, the company was able to streamline its operations, reduce stock imbalances, and enhance inventory accuracy. This innovative solution provided actionable insights that enabled better planning, minimized waste, and enhanced decision-making. With this solution, they were able to realize:
INR 1Cr +
Saving through Demand Analysis
INR 1.5 Lacs/month
Savings in transportation cost Logistics optimization
Areas of Focus
The Translytics team worked closely with the organization to identify key pain points. After conducting comprehensive data analysis and discussions with the client's stakeholders, the following focus areas were pinpointed as critical for driving operational improvements:
- Demand Fulfillment Efficiency: Improving demand forecasting to ensure better alignment between production and customer needs.
- Profitability Enhancement: Streamlining processes and reducing costs to increase overall profit margins.
- Reduction in Finished Goods (FG) Inventory: Identifying areas where excess finished goods could be minimized, freeing up working capital.
- Reduction in Raw Material (RM) Inventory: Ensuring optimal raw material levels to reduce holding costs and improve cash flow.
- Logistic optimization: Enhancing the efficiency of transportation and distribution networks to reduce costs and improve delivery performance.
Solution Approach
Translytics team collaborated with the organization to understand their pain areas, upon data analysis and further discussion following focus areas were identified:
- Demand Analysis
Analyze SKUs, Customers to identify outlying demand patterns for the improvement of demand fulfillment, reduction in FG inventory & profitability improvement - Demand Supply Analysis
Identify factors causing the gaps between demand pattern and supply pattern and identify ways to improve these gaps and reduction in FG inventory - Procurement Analysis
Identify the gaps on procurement side to improve the supply fulfillment and reduction in RM inventory - Distribution Analysis
Identify the gaps in current distribution of FG to improve demand fulfillment with least cost of distribution - Inventory Classification & Prioritization
Classify inventory using ABC/XYZ analysis to focus on critical SKUs and optimize planning efforts for better service levels and working capital efficiency
Impact
- Demand Analysis Savings: Potential savings of approximately ₹1 crore.
- Procurement Analysis Savings: Estimated savings of ₹43,000 per month.
- Distribution Analysis Savings: Expected savings of ₹1.7 lakh per month.
Through AI-driven demand forecasting, multi-echelon inventory optimization, and strategic supply chain network planning, our client in the lubricant industry achieved significant cost savings and service improvements. Backed by deep supply chain diagnostics, we addressed inefficiencies across demand, inventory, and logistics to drive sustainable growth. Through the integration of data-driven insights, we optimized their entire supply chain, improving visibility and reducing operational bottlenecks. For more information on best practices in supply chain optimization, check out this article from Supply Chain Digital.
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