The Client
A well-established tire manufacturer based in Chicago, with nearly two decades of experience in producing high-quality tires. Over the years, the company has built a strong reputation among its partners and end users for delivering durable, reliable tires. Specializing exclusively in tire production, it has earned the trust and loyalty of customers through its consistent product excellence.
The Problem
Despite offering one of the best products in the market, the client has been experiencing a steady decline in sales over the past few years. Growing competition from both domestic and international players, along with high manufacturing and inventory costs, has further impacted revenue.
Without accurate demand forecasting and data-driven decision-making, inefficiencies in production and inventory management continue to pose challenges. To address these challenges, the client implemented various software and services, but they failed to deliver significant improvements.
To overcome these challenges and achieve their goal of reviving sales and optimizing operations, the client turned to Genesis NGN for a predictive AI solution to enhance demand forecasting, streamline inventory management, and improve overall efficiency.
The Research
To help the client address these challenges, Genesis NGN assembled a team of experts to conduct a thorough analysis of their operations. The team visited the client’s manufacturing plant to identify the root causes of rising costs and declining sales.
The research revealed that inaccurate demand forecasting led to inventory mismanagement, either excess stock, driving up storage costs, or shortages, resulting in lost sales. Additionally, urgent tire demand forced the client to procure raw materials at higher prices, further inflating production costs. These inefficiencies reduced the competitiveness of their products in the market. Furthermore, slow production cycles, caused by poor planning, contributed to missed sales opportunities.
By pinpointing these operational bottlenecks, the research provided critical insights for implementing a predictive AI solution to improve demand forecasting, optimize inventory management, and enhance production efficiency.
The Solution
Genesis NGN developed an AI-powered Predictive Analytics System to help the client optimize demand forecasting, inventory management, and production planning.
The system leverages historical sales data, market trends, and real-time inputs to accurately predict future demand. This enables the client to manufacture the right quantity of tires, reducing overproduction and stock shortages. Additionally, the AI system optimizes raw material procurement, ensuring materials are ordered at the right time and in the right quantity, minimizing last-minute purchases at higher costs.
By integrating predictive insights with production scheduling, the solution also enhances operational efficiency, reducing lead times and improving supply chain coordination. With real-time analytics, the client can now adapt to market changes proactively, maintaining competitiveness while lowering costs.
This AI-driven approach empowers the client with data-backed decision-making, ensuring streamlined operations, cost efficiency, and sustainable growth.
The Benefits
- Lower Costs: Optimized production and inventory management reduced storage, procurement, and operational expenses.
- Timely Raw Material Ordering: AI-driven forecasting ensured materials were purchased at the right time, minimizing last-minute high-cost orders.
- Higher Sales & Market Competitiveness: Reduced production costs allowed for competitive pricing, driving increased sales.
- Efficient Production: AI-based scheduling streamlined workflows, minimizing delays and idle time.
- Data-Driven Decision-Making: Real-time insights enabled smarter strategic planning and faster market response.
- Stronger Supply Chain: Predictive analytics helped mitigate risks, ensuring smooth and uninterrupted operations.
