AI-Driven Forecast: Tool to Solve Inventory Crisis

Client Snippet

A machine manufacturing company based in the UAE with an annual turnover of $5 million faced major inventory challenges due to unpredictable demand and high mix–low volume production. They approached Total Plant Setup to address frequent stockouts, low inventory turns, and a growing pile of obsolete stock. The company sought a technology-driven solution to streamline their demand planning and gain better control over their inventory operations.

Major Bottlenecks Identified

◾️  25% stockouts affecting on-time delivery
◾️  Over 15% inventory became obsolete annually
◾️  Inventory turnover rate below industry average (under 3x/year)
◾️  Unpredictable demand made MRP planning ineffective

Solutions Implemented by Total Plant Setup

◾️  AI-driven forecasting tool customized for high mix environments
◾️  Real-time inventory visibility dashboards integrated with ERP
◾️  Historical sales & market trend data modeling enabled
◾️  Automated reorder level & safety stock adjustment system

Key Results Delivered

✔️ 40% reduction in stockouts within 3 months
✔️ 60% drop in obsolete inventory by end of Q2
✔️ Inventory turnover improved from 2.8x to 6.1x annually
✔️ Forecasting accuracy increased to 87% across SKUs

Struggling with frequent stockouts and obsolete inventory buildup?

• Our AI-driven forecasting tool transformed inventory planning for high-mix, low-volume manufacturers.
• Total Plant Setup specializes in smart, scalable, and industry-proven digital solutions.
• Click here to discover more about our latest projects.