Resource planning for auto spare parts manufacturer

CLIENT

South East Asia-based large automobile spare parts and components manufacturer

OPPORTUNITY

The client wanted clarity on the volume of work in the pipeline to plan resources and regulate frequency of service reminders. The client also wanted to better predict when a particular part would be needed in order to minimize inventory holding.

SOLUTION

SG Analytics produced a comprehensive early warning system to keep track of the wear and tear of service equipment. SG Analytics also developed a predictive analytics tool to forecast when a particular component would be needed:

• Knowing that there is a fixed period after which an instrument is serviced, the SG Analytics team used this as a reference and calculated the deviation
• The team deployed a regression model with ARIMA errors to handle the time series component with multiple predictor variables
• The SG Analytics team addressed predictive inventory management challenges by using SVM algorithm for classifying instruments, based on whether a particular part of an instrument would need replacement when the instrument came into service
• The team also integrated a predictor field based on the service forecast, based on which the client could predict the time taken for the instrument to come back for servicing

VALUE DELIVERED

• Reduced the cost of inventory by 30%
• Optimized the service process and imparted pipeline visibility to vendors for seamless delivery