Build-to-Stock Configuration Optimization for Dealer-Level Inventory Steering

Problem and Context

An overseas premium automotive sales organization needed a better way to decide which stock vehicles and option combinations each dealer should carry. Existing build-to-stock choices did not sell equally well across micro-markets, which increased customer incentives and left cars on lot for too long. The business therefore needed a scalable recommendation approach that reflected local demand, competitive intensity, and dealer conditions while still respecting ordering restrictions and practical sales requirements.

7 days

reduction in median days a stock vehicle remains unsold

+41%

increase in dealer acceptance of vehicle template recommendations

8

dealer clusters identified with similar purchase patterns

Approach and Solution

The project combined demand insights and decision logic in a two-step recommendation approach. First, historical sales patterns were used to estimate which dealer and vehicle combinations were likely to perform best in each local market. Second, those insights were translated into concrete ordering recommendations while respecting key business rules such as supply limits, option structures, and practical sales requirements. The solution was developed iteratively with business input and included clear recommendation explanations so dealers could understand why a proposal fit their situation.

Results and Impact

The initiative created a structured and analytically grounded basis for dealer-level stock configuration decisions in a major market. It translated local demand patterns, competitive context, and ordering constraints into concrete template recommendations that reduced reliance on intuition alone. By linking demand insights with consistent decision logic, the solution improved transparency in build-to-stock decisions and established a scalable foundation for more targeted inventory steering.

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Steffen Illig

Partner, Project Manager and Expert for Data Analytics

steffen.illig@5v-strategy.com