55,000+
Garages across France and Germany
700+
Wholesalers in the network
100+
Scenarios modeled
88%-93%
CO2 footprint savings on outbound
A global automotive manufacturer sells branded parts and accessories through a network of 700+ wholesalers to more than 55,000 garages across France and Germany. Independent competitors had begun to serve smaller dealers and garages directly, and the manufacturer had no full visibility into its own last-mile network to protect the availability of its parts at the point where the end consumer needed them.
So the manufacturer partnered with Solvoyo on strategic network design: a greenfield hub network built from scratch to serve end consumers with multiple shipments per day, at national scale, in both markets. The result is estimated recurring annual savings of €23M in France and €8M in Germany, plus 88% to 93% CO2 footprint savings on outbound shipments.
Competitors Began Serving Smaller Garages Directly, and Visibility Was Limited
Competitive pressure was building at the last mile, the final step between the network and the end consumer. Whatever the manufacturer built in response had to work at national scale in both France and Germany.
The manufacturer was dealing with:
- Independent competitors serving smaller dealers and garages directly, bypassing the manufacturer’s own network
- Incomplete visibility into the manufacturer’s own last-mile network
- Branded parts that had to stay available at the point where the end consumer needed them
With competitors beginning to serve garages directly and visibility limited, the response had to start from a clean sheet: a true greenfield network design.
Last-Mile Network Design: A Greenfield Hub Network Tested Across 100+ Scenarios
Solvoyo designed a greenfield hub network, including last-mile delivery, able to serve end consumers with multiple shipments per day. The network was optimized jointly against Total Cost to Serve and Total CO2 Footprint objectives.
The work produced a network blueprint: a plan to establish and run the last-mile delivery network against those two objectives. Solvoyo also modeled 100+ scenarios to refine the customer service strategy and adapt it to the brand’s position within each country’s borders.
The work also identified savings on two horizons. Short-term savings came from delivery consolidation and renegotiated 3PL contract terms, ready to execute immediately. Long-term savings were mapped to a reconfigured network and go beyond what short-term fixes could reach.
Estimated Annual Savings of €23M in France and €8M in Germany
The network design points to estimated recurring annual savings of €23M in France and €8M in Germany.
The other gains:
- 88% to 93% CO2 footprint savings on outbound shipments
- A short-term savings plan, ready to execute immediately
- A long-term savings plan based on a reconfigured network
What Does This Mean for You?
Last-mile decisions involve trade-offs between cost, service, and emissions. Testing a greenfield design across 100+ scenarios let this manufacturer see the Total Cost to Serve and Total CO2 Footprint impact of each option before committing to it, and it had both a short-term and a long-term savings plan ready to act on.
If competitive pressure is exposing gaps in your own last-mile network, this kind of scenario-based redesign is repeatable. It starts from a clean sheet and weighs each option against cost and CO2.
About Company
A global automotive manufacturer distributing branded parts and accessories through a network of 700+ wholesalers to more than 55,000 garages across France and Germany.
Achievements
€23M estimated annual savings in France
€8M estimated annual savings in Germany
88%-93% CO2 footprint reduction
100+ scenarios modeled for network redesign
Don’t take our word for it
80% of IT tools investment fails if the partners don’t strive to continuously improve and adapt. That is what sets our partnership with Solvoyo apart.
With Solvoyo, we eliminated spreadsheets from the process and simultaneously increased process speed and planner efficiency across all regions.
By rationalizing our North American network, we provided improved service at lower costs through redesigning our network. Our project succeeded in shifting our “inventory-centric” perspective to one of “total-cost optimization.” We have since consolidated our depots in North America, leading to significant infrastructure cost savings as well as a sustained inventory reduction of $5 Million.
Solvoyo’s S&OP platform gives both the regions and the HQ the ability to maintain a supply plan harmonized with demand and inventory investment targets. We now identify supply plan discrepancies proactively. Along the way, we eliminated Excel from the process and simultaneously increased process speed and planner efficiency across the enterprise.
We see rapid changes in demand, and when the inventory is short, we adjust our production plans accordingly. The adjustment requires a lot of manual work, causing suboptimal plans and inefficiencies on the production site. With Solvoyo’s optimized plans, not only do we make easy and smart decisions but also respond to any rapid change at the speed of the market.
