| Industry | Manufacturing: Automotive Electronic Components (ETC Vehicle Devices) |
|---|---|
| Annual Revenue | Approx. ¥150 billion |
| Employees | 500 |
| Services Provided | Strategy Development / B2B Strategy / Demand Forecasting / Data-Driven Management |
This company, with annual revenue of ¥150 billion, manufactured and sold ETC vehicle devices through a B2B distribution network. However, at a certain point, a problem that threatened the very foundation of their business began to emerge. Repeated "bulk orders followed by last-minute cancellations" from wholesalers had pushed their production planning and inventory management to the brink of collapse.
"Honestly, we were considering downsizing the business," the manager confided — that's how severe the situation was. The problem wasn't just surface-level inventory management; it lay in the distribution structure itself and the fragility of the production system that depended on it.
Meets Consulting proposed a fundamental restructuring of the distribution network, strategically leveraging the timing of a "model change" in the business. By using the product transition as an opportunity to overhaul the problematic distribution structure itself, this was a bold decision — but also the only path to resolving years of accumulated problems.
Leveraging the model change timing, we restructured multiple wholesalers and distribution channels. By consolidating into specific trade channels, we built a structure that controlled the flow of special-price products into the market and prevented price disruption. This single move directly led to significant profit margin improvement.
To break free from the reactive production system that was at the mercy of "bulk orders → cancellations," we built a data-based demand forecasting model. Combining sales records, seasonality, and market trends improved forecasting accuracy and contributed to stabilizing production planning.
We established a system for sharing demand forecast results across production, sales, and logistics departments. Cross-departmental data utilization became the foundation for achieving a "resilient production management system" and "stable corporate growth."
Stockout rate improved by 15% YoY, and profit margin improved by 20% YoY. As the words "It took time, but we achieved a more resilient production management system and stable corporate growth" suggest, this was not a short-term numerical improvement but the result of structural transformation.
"The crisis of bulk orders and last-minute cancellations from wholesalers became the catalyst for reviewing everything from distribution to production management, which improved our profit margins. It took time, but we achieved a more resilient production management system and stable corporate growth. We were honestly considering downsizing the business, so we're truly grateful for Meets Consulting's support."— Manufacturing (Automotive Electronics), Manager
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