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
