Case study >

A Fortune 100 Commercial Vehicle Company Eliminates the Bullwhip Effect with TADA’s Demand Navigator Solution

January 9, 2025

KPIs

10-15%

Reduction in Excess Inventory

12-18%

Improvement in Personnel Productivity

40%

Reduction in Backorders

Overview

A division of a Fortune 100 commercial vehicle company, with an annual spend of several billion dollars, faced significant challenges in predicting future sales due to uncertainty in demand. This unpredictability created a bullwhip effect, impacting downstream partners and increasing working capital by leading to excess and obsolete inventories, lost sales, and poor customer service.

To address these challenges, the company deployed TADA’s Demand Navigator solution, enabling end-to-end visibility and predictive demand planning to reduce excess inventory and improve operational efficiency.

Customer Challenges

Bullwhip Effect in the Demand Cycle:

Demand uncertainty caused supply chain inefficiencies, leading to restricted responsiveness, excessive costs, and lost market share due to disconnected planning and information flow.

Excess Inventory:

Suppliers and partners stocked excess inventory for safety due to limited visibility, resulting in inefficiencies and increased costs.

Disrupted Planning Processes:

Disconnected planning and communication across the demand-to-supply cycle created latency and inefficiencies.

Solution

TADA implemented its Demand Navigator solution to address these challenges, providing the following capabilities:

  • Predicting Bullwhips – end-to-end visibility  
  • Reduce latency – upside and downside risk   
  • Established control limits/guard rails  
  • Drive & track collaboration

Results

By leveraging TADA’s Demand Navigator solution, the company achieved:

Enhanced Collaboration

Collaborate and communicate part needs effectively based on schedules.

Streamlined Communication

Eliminate multiple sources of communication and confusion on the execution of the demand plan.

Increased Planner Productivity

Planners focus on value-added tasks rather than chasing answers

Conclusion

TADA’s Demand Navigator empowered the Fortune 100 company to eliminate the bullwhip effect, improve visibility, and optimize inventory across its supply chain. By providing a single source of truth and predictive capabilities, the solution reduced backorders, excess inventory, and operational inefficiencies, ensuring sales growth, customer success, and profitability.