Case Study: STM (Société de transport de Montréal) achieves 94% parts availability and $4.1M inventory reduction with Smart Software

STM - Customer Case Study

STM (Société de transport de Montréal) needed to get control of a sprawling spare-parts inventory: over 200,000 SKUs, $33.6M on hand, 76% part availability and more than $10M in estimated inactive stock. The transit agency needed to move from manual “best guess” stocking rules to forecast-driven parameters that handle frequent intermittent demand while meeting strict service agreements. Smart Software was engaged, using its demand-forecasting and inventory-optimization solution (SmartForecasts®) to address the challenge.

Smart Software implemented its forecasting tool and helped STM recalculate safety stocks, reorder points and provisioning processes to account for intermittent demand and economic lot sizes, while improving in-house replenishment workflows. The initiative raised overall part availability to 94% (+18%), cut inventory by $4.1M (–12%) to $29.2M, and reduced inactive stock to $7.8M (–24%), with demand estimates also prepared for major RFPs—demonstrating clear cost reduction and service improvement under Smart Software’s solution.

STM

Réginald Soubry

Senior Analyst – Material Management Logistics