Inventory demand forecasting for automotive supply chain

Bosch's automotive division operates in a Just-in-Time (JIT) delivery environment, where maintaining just the right amount of parts is critical to minimize warehousing and inventory management costs while keeping production running smoothly.

However, Bosch faced a significant challenge: their customers' demand forecasts were often inaccurate. Major automotive manufacturers like Ford, Toyota, and GM could pressure Bosch, leading to fines, excess inventory, and potential missed orders. Given the fast-paced nature of the automotive industry, timely delivery was crucial for both Bosch and their customers.

Without accurate forecasting, Bosch risked financial penalties, carrying unnecessary inventory, and damaging relationships with key customers in an industry where precision and reliability are paramount.

To address these challenges, we worked closely with Bosch's warehouses and planning departments in Farmington Hills and Chicago, deploying a comprehensive demand forecasting solution.

The system handled tens of thousands of SKUs across various product lines and managed the demands of hundreds of diverse customers. New forecasts were generated daily, providing real-time insights to support critical inventory decisions.

The solution integrated seamlessly with Bosch's existing operations, enabling the planning teams to make data-driven decisions that balanced inventory optimization with the reliability requirements of JIT manufacturing.