Energy Storage Industry: Smart Forecasting to Handle Demand Volatility

Background — fluctuating demand on LFP battery lines

An energy storage battery manufacturer producing lithium iron phosphate (LFP) batteries faced large demand swings for materials such as terminal bolts and busbar tabs. Under the traditional model, frequent order changes led to a high monthly stockout rate for a certain bolt model, driving up emergency purchasing costs. The Bear Bit NVMI® solution optimizes this with dynamic replenishment.

Consignment model innovation

• Suppliers consign bolts in the customer’s smart cabinets and settle based on actual consumption.
• If an order is canceled and a batch remains unused, the supplier can remotely lock and recall the stock, preventing large slow-moving losses.

Real-time data sharing

• The production system connects directly to the NVMI® platform.
• When a production line’s takt time increases by a defined percentage, the system automatically adjusts the line-side safety stock, improving delivery efficiency.

Results

• Emergency procurement costs dropped significantly.
• Inventory turnover increased.
• Annual total cost reduction became substantial.