The Client
Our client, A20 Motors, manufactures more than 10,000 premium-quality spare parts for Asian, American, and European vehicles. They’re one of the largest manufacturers and distributors of aftermarket car and truck parts in Central and South America, North America, Europe, Asia, Australia, and the Caribbean.
Disclaimer - The name A20 Motors is a placeholder as there is an NDA signed between both parties.
Challenges
A20 Motors relied on a mathematical formula to forecast the sales of vehicle parts. While this method initially worked, it became increasingly unreliable over time, causing operational inefficiencies.
- The formula’s declining accuracy led to overstocking and understocking, resulting in missed sales opportunities and reduced profits.
- Inventory management, restocking, warehouse organization, and shipping were all negatively impacted.
- Limited data accuracy hindered their ability to maintain operational efficiency.
Solution
To improve sales forecasting and inventory management, A20 Motors partnered with Maruti Techlabs to build an advanced machine learning model tailored to their needs.
- Conducted a feasibility study to analyze data correlations and prepare datasets for model training.
- Developed a machine learning model using the Long Short-Term Memory (LSTM) algorithm for its high prediction accuracy.
- Addressed challenges with skewed data by building custom APIs to extract accurate and updated information.
- Enhanced the model to predict sales for new parts by identifying shared characteristics with existing products.
“Maruti Techlabs is attentive to customer service. Their communication is excellent even after the development. They always make sure that we're happy with what we have.”
- VP of Product Development, A20 Motors
Results
A20 Motors achieved outstanding supply chain optimization:
- Prediction errors for high-selling parts narrowed to ±20%.
- Inventory tracking and restocking processes improved significantly.
- Storage allocation and operational efficiency were streamlined.
- Scalable growth enabled through advanced forecasting and data-driven decisions.
- Seamless operations now ensure higher demand fulfillment and profitability.
