Consumer Electronic Manufacturer
Service Parts Network Optimization to Reduce Costs

Applied Materials
450 Stores ​
45,000 SKUs
4 Countries​
600+ Vendors
8K+ Products​
9 DCs
solvoyo strong


Rationalize time-critical service network in North America serving several hundred high-value semiconductor equipment

Reduce Total Cost to Serve to comprise multi-echelon spare parts inventory investment, handling costs, and expediting costs while meeting or exceeding service level agreement (SLA) targets


Escalating costs in time-critical service networks

No quantitative basis for network-wide improvement initiatives

solvoyo strong


Determined the optimal size of the service network and the role for each facility

Assigned service locations to DCs and set optimal safety stock levels

Achieved $10 million total savings that Applied Materials reported publicly

$10 M
Total Savings