A top On-Highway Commercial Truck OEM faced significant difficulty communicating accurate inventory requirements to Kem Krest due to their own forecast uncertainty. Because of the inaccurate sales forecasting of the OEM, accuracy rates were only 60%. This greatly affected on-time performance.

Kem Krest supplies equipment kits to the OEM’s distribution and replenishment centers. These kits are essential to supporting aftermarket operations that maintain critical equipment across industries such as transportation, construction, and power generation. Delays in delivery can disrupt service schedules, extend customer downtime, increase unplanned logistics costs, and ultimately damage brand reputation and supplier relationships. Ensuring timely and accurate fulfillment is not just operationally important—it’s strategically vital.

Our team of experts had been developing an AI tool designed to improve our own forecasts and decided to apply it to our customer’s own issue. The AI tool was designed to improve inventory modeling. This tool leverages both short-term and long-term sales data to generate more precise forecasts for required inventory at specific times.

By leveraging our AI tool, we’ve observed a notable enhancement in accuracy, achieving an 18% improvement. With upcoming algorithm upgrades, we anticipate accuracy to exceed 80%. This AI tool enables both parties to make reliable forecasts, strengthening our business relationships with the OEM and optimizing inventory management. Consequently, this leads to a positive financial impact for both Kem Krest and the OEM.