By deploying advanced analytics, carmaker Jaguar Land Rover has contributed significantly to its profitability despite tough trading conditions.
After a challenging few quarters which have seen factory shutdowns, a semiconductor shortage and difficulties with both supply and demand, the UK-based manufacturer, which is part of Tata Motors, rejigged its analytics forecasting strategy. Its new approach is based around graph database technology, giving it far more precise information on which to base critical business decisions.
Graph databases work by detecting and leveraging connections between different types of data in real time, and can spot otherwise invisible relationships between completely different types of information. JLR’s data science and analytics professionals have used the technology to develop an innovative forecasting engine, based partly on open source software. In its first year of deployment, the company estimates to have saved £2 million with it.
Harry Powell, director of data and analytics at JLR, said the new engine, based on a solution from TigerGraph, has been applied primarily to its supply chain, cutting planning timelines from three weeks to 45 minutes. He said it will now use the same technology to address quality improvement and pricing applications.
“The global semi-conductor shortage remains challenging but I’m pleased to see the actions we have been implementing reduce the impact,” said JLR CEO Thierry Bollore, talking about the company’s difficult year. “With strong customer demand with a record order book we are well placed to return to strong financial performance as semiconductor supply begins to improve.”
Pic courtesy of JLR