DMS in the Spotlight - AI & the Future of Automotive Parts🔧✨
Our latest insights on AI’s game-changing role in the automotive aftermarket have been featured in the March Issue of the Australian Automotive Aftermarket Magazine. AI isn't the future—it’s the NOW. Ready to accelerate your supply chain
strategy?
Demand Management Systems (DMS) discusses the transformative role of AI in demand planning.
The Australian automotive parts industry faces rapid technological advancements, shifting consumer preferences, and global supply chain disruptions.
Efficient demand planning is now critical to maintaining competitiveness and profitability, and Demand Management Systems (DMS) says Artificial Intelligence (AI) is a key enabler, helping businesses address industry challenges with precision and agility.
Key challenges in the Australian automotive parts industry:
Demand volatility – market fluctuations, seasonal trends, and evolving consumer behaviours make accurate demand forecasting difficult, often leading to overstocking or stock shortages.
Complex inventory management – managing a vast range of parts requires balancing stock availability while minimising overall inventory.
Supply chain disruptions – global events like pandemics and material shortages can disrupt supply chains, increasing costs and delays.
Technological integration – with vehicles becoming more advanced, ensuring availability of specialised components adds complexity to supply chains.
The role of AI in addressing these challenges.
AI-driven demand planning enhances supply chain performance by:
Improving forecast accuracy – AI analyses sales history, market trends, and external factors to predict demand more accurately, preventing stock imbalances.
Optimising inventory – AI dynamically adjusts stock levels to align with demand, reducing excess inventory and waste.
Strengthening supply chain resilience – early detection of disruptions enables proactive decision-making and supplier diversification.
Integrating advanced technologies – AI works alongside IoT and automation to improve visibility, decision-making, and efficiency.
Proven business benefits of AI in demand planning:
DMS explains that companies implementing AI-driven demand planning see measurable improvements, including:
60 percent lower expedited costs – improved forecasting minimises last-minute shipments, cutting logistics expenses.
50 percent reduced waste – aligning stock levels with demand decreases excess inventory.
50 percent fewer stockouts – AI ensures key products remain available, improving customer satisfaction.
30 percent better stock turnover – faster inventory rotation enhances cash flow and reduces holding costs.
DMS offers the following examples as case studies of AI in action:
Zeder Corporation, Australia’s largest steering and suspension supplier, reportedly reduced stock levels by 30 percent while improving customer fulfilment, freeing up capital and reducing lost sales.
Eng Soon Auto, a leading distributor of BMW and MINI parts, reduced inventory value by six percent and increased sales by five percent in just six months by adopting AI-driven demand planning.
Assessing your supply chain for AI opportunities:
Before implementing AI, DMS says businesses should evaluate:
Processes – are planning and inventory workflows structured or overly manual?
People – do teams have the expertise to interpret AI insights effectively?
Data – is sales, stock, and order data accurate and comprehensive?
Technology – can current systems provide the source data and use the outputs?
DMS says engaging its team can help businesses assess supply chain maturity, identify AI-driven improvements, and implement best-fit solutions, with DMS providing expert guidance to enhance forecasting, optimise inventory, and future-proof supply chains.
In summary, DMS says AI is no longer optional, stating that it’s instead a competitive necessity for the Australian automotive parts industry.
By addressing demand volatility, inventory complexities, and supply chain disruptions, DMS says AI can empower businesses to improve efficiency, reduce costs, and enhance customer satisfaction.
