Smart demand forecasting with AI at Eduards Trailer Factory

Eduards Trailer Factory is a major player in the trailer market. With a wide range of products - from tilting models to car transporters - they serve both private and professional customers through a dealer network spread across Northern, Western, and Eastern Europe. Their business model is based on assembly: components such as wheels and frames are purchased separately and then assembled into finished products in their production facilities. However, this approach presents several operational challenges. Competence center InfoFarm took the initiative and developed an innovative AI platform.

The most pressing challenge for Eduards Trailer Factory lies in managing delivery times. Customers expect their trailers within eight business days, but the components required for assembly sometimes have a lead time of eight to ten weeks. This necessitates extensive planning, which is further complicated by the wide product range of over 3,000 items. Until recently, demand forecasting was done using Excel. This method was time-consuming and offered insufficient insight into future trends, leading to inefficient inventory management and the risk of both overstock and understock.

To address these challenges, Eduards Trailer Factory decided to invest in a cutting-edge solution: a Fabric-based AI platform integrated with their existing ERP system, Microsoft Business Central. This platform collects and processes large amounts of data, including order history, dealer information, price fluctuations, and market trends. Combining this data creates a powerful foundation for training a machine learning model.

The model is specifically designed to forecast demand, both short-term (the next 8 weeks) and long-term (up to 12 months). The result? A collection of 3,000 AI models generating forecasts for every item, with an average margin of error of only 2.06%!

This not only allows inventory levels to better align with expected demand but also to schedule production more efficiently. By integrating these forecasts into their operational processes, Eduards Trailer Factory can ensure the right components are available at the right time, without holding unnecessary inventory.

The results were quickly noticeable. The new AI platform delivered objective and accurate forecasts, improving inventory management. Where previously too many or too few components were often ordered, there is now an optimal balance. This has not only reduced operational costs but also strengthened Eduards Trailer Factory's ability to deliver on its promise of fast delivery times.

Furthermore, the platform provides valuable insights into the factors that influence demand, such as seasonal trends and regional variations. These insights not only help with better inventory and production planning but also support strategic decisions at the company level.

The AI platform has helped Eduards Trailer Factory strengthen its competitive position in a stagnant market. By operating more efficiently while simultaneously increasing customer satisfaction, they not only better served existing customers but also capitalized on new growth opportunities. This transformation demonstrates how technology, and specifically AI, can play a decisive role in solving complex logistics challenges and creating distinctive added value for customers.

With this smart approach, Eduards Trailer Factory has implemented a future-proof solution that not only addresses their current challenges but also prepares them for further growth and innovation in the manufacturing industry.

Xploration

Eduards Trailer Factory struggled to accurately forecast demand, making inventory management and production planning difficult due to long component lead times and a wide product range.

Our solution

InfoFarm integrated an AI platform with their ERP system, enabling Eduards Trailer Factory to create accurate demand forecasts, making inventory management and production planning more efficient. This leads to lower costs, reduced overstock and understock, and improved adherence to fast delivery times.

Results

The AI platform has led to more accurate demand forecasts, allowing Eduards Trailer Factory to optimize their inventory management and reduce operational costs. This has resulted in more efficient production planning, reduced overstock and understock, and improved customer satisfaction.