APPROACH

We followed a two-step process:

  • Impact analysis: The Tredence team put studied the inherent nature of sub-optimal fleet transfers and understand its drivers. We were able to infer that 40% of the transfers occurred despite inventory availability, which was driven by anticipation of demand. However, about 35% of the transfers did not result in any rental in the short term, indicating inefficient demand analysis.
  • Solution development: We put together a demand forecast solution – a hybrid time series model that helped forecast short-term demand.

KEY BENEFITS

  • The forecast model was scalable to predict demand at different levels, reducing suboptimal fleet transfers
  • It enabled optimized inventory planning for district manager, leading to better fleet utilization

RESULTS

The impact of the solution was two-fold

  • 35% reduction in sub-optimal transfers during the first quarter of implementation
  • Reduced stock out days through better anticipation of future demand