Global Automotive Manufacturer Strategic Network Design for Aftermarket Parts & Accessories
Automotive Manufacturer
18 DCs across Europe
16,000+ Dealers
1,700+ Suppliers
400,000+ Aftermarket Parts & Accessories
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
Regional DCs with overlapping functions
Vast cross-dock network – some owned some contracted
Wrong inventory mix
Regions/countries having separate contracts with the same 3PLs and carriers
Benefits
An analytics platform to optimize the global spares network using a Total Cost to Serve objective
More than 120 scenarios to refine the customer service strategy and the physical infrastructure to serve that strategy
Short-term savings (4% of Total Cost to Serve, 18M Euros recurring annual) through flow consolidation and optimization
Long-term net savings (7% cumulative, +11M Euros) through opening/closing DCs
€18 M Recurring Annual Savings
€11 M Net Savings from DC Opening/Closing
