6^th Annual Edition

Maruti Suzuki, India'But as the company launched new products and phased out older models, it was left with a number of new—and a lot of obsolete—parts. Both new and old parts pose a challenge to accurate demand forecasting because of a limited demand history with new parts, and a sudden drop in demand for obsolete parts. To enable precise demand planning and better control, Maruti designed a strategic tool with in-built statistical algorithms which could handle trends, seasonality, event impacts, and demand intermittencies. The solution has improved forecast accuracy for new and obsolete parts by 50 percent and reduced inventory by 20 percent. Plus, Maruti Suzuki is now able to penetrate into the unorganised market of spare parts better, resulting in better business and increased profitability.