1,100+
Dealer locations
40
X-docks
$5B
Revenue
100%
Plan acceptance rate
Vestel is a leading Turkish multinational known for consumer electronics, household appliances, and information technology products. It exports to more than 150 countries and generates $5B in revenue. Its network serves 1,100+ dealer locations through 40 cross-docks, and fulfillment and transportation planning for that network ran in separate silos with no shared objective.
So Vestel partnered with Solvoyo to plan fulfillment and transportation together instead of separately. The daily plans have a 100% acceptance rate, and the redesigned network delivered 18% in annual recurring transportation savings and a $30M reduction in inventory investment.
Fulfillment and Transportation Planning Ran in Silos with No Common Objective
Rapid growth had exposed weaknesses in Vestel’s order-to-cash cycle. Fulfillment and transportation were planned separately with no common objective.
Manual operations led to:
- Stock-outs
- Customer complaints
- Lost sales
- Rising costs on both the fulfillment side and the transportation side
The siloed, reactive planning also reduced fulfillment performance.
Solvoyo Automated Mode, Vehicle, and Route Decisions in One Plan
Solvoyo’s automated mode, vehicle, and route determination decides which products move on which transportation mode, vehicle, and route, and builds a single plan that minimizes transport costs while considering daily inventory availability alongside those costs.
The solution also generates three separate daily plans, each using different criteria to allocate on-hand and in-transit inventory to current orders.
It eliminated manual inventory allocation and inaccurate invoices, which shortened the order-to-cash cycle.
100% Plan Acceptance and $30M Less Inventory Investment
The daily fulfillment and transportation plans have a 100% acceptance rate. The redesigned network also delivered savings on both a one-time and a recurring basis:
- $10M in one-time savings after closing 4 distribution centers
- 18% in annual recurring savings on transportation
- $30M reduction in inventory investment
What Does This Mean for You?
Fulfillment and transportation planned as two separate silos will leave savings on the table, because the two decisions trade off against each other constantly. Planning them together is what let Vestel close 4 distribution centers and cut transportation costs every year while keeping a 100% plan acceptance rate.
If your fulfillment and transportation plans are built separately, against separate goals, that is the situation Vestel started from. A single plan that sets mode, vehicle, and route while considering daily inventory availability is what Solvoyo built for Vestel.
About Company
Vestel is a leading Turkish multinational known for consumer electronics, household appliances, and information technology products, exporting to more than 150 countries.
Achievements
100% plan acceptance rate
$10M one-time savings from closing 4 DCs
18% annual recurring transportation savings
$30M reduction in inventory investment
Don’t take our word for it
Solvoyo provided Vestel with both the tools and the guidance to realize our ambitious process improvement goals. Solvoyo has been an ideal partner, working with us hand-in-hand through each of the increments, and helping us maximize our return on investment.
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.
