Global Automotive Manufacturer
Strategic Network Design for Aftermarket Parts & Accessories

18 DCs across Europe
16,000+ Dealers
1,700+ Suppliers
400,000+ SKUs

Goals

Create synergy in the supply chain network through infrastructure consolidation, optimized product flow, and common contracts

Identify opportunities to reduce Total Cost to Serve

Challenges

Complex network with overlapping DCs with overlapping functions and cross-dock networks

Wrong inventory mix causing availability and over-stock problems

Separate contracts with the same 3PLs and carriers causing inefficiencies and creating complexity

Benefits

Delivered an analytics platform to optimize the spare parts network using a Total Cost to Serve model

Evaluated 120+ scenarios to refine the customer service strategy

Reduced Total Cost to Serve by 4%, delivering 18M Euros recurring savings through flow consolidation and optimization

Realized 7% cumulative savings, amounting to +11M Euros through opening/closing DCs

€18 M Recurring Annual Savings
€11 M Net Savings from DC Opening/Closing

Solutions