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Selecting and implementing a forecasting solution for an automotive component distributor

A leading UK automotive aftermarket component distributor required a forecasting solution to enable them to increase their sales whilst reducing their stockholding and maintaining appropriate availability of their 200,000 SKUs

The solution: Hatmill selected and implemented a fit for purpose forecasting system

Executive Summary

Project Description:

Hatmill were asked to select and implement a forecasting solution for the client to help them achieve their stockholding and availability targets across 200,000 SKUs

Project Challenges:

The client was facing numerous implementation challenges such as:

  • The client needed to segment their 200,000 SKUs to understand availability priorities for the customer
  • The customer proposition needed to be defined across the product range
  • The client lacked analytics on demand and needed a product hierarchy in order to optimise their stocking locations

Project Solution:

  • Analysed historical demand and sales patterns to define the data feeds
  • Created a demand sorting process to filter ‘false demand’
  • Worked with the supply chain team to select and implement a system that provided the required levers to control stock locations, stock levels and replenishment algorithms
  • Developed a number of workstreams to address the stock management
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