Managing Piaggio’s spare parts distribution network had always been challenging due to the large number of parts, the continuously evolving parts catalog, and the large number of codes with low and very low demand. All of these issues affected the ability to deliver desired service levels and keep management costs down. Piaggio decided it needed more advanced technology and processes to meet these challenges.
Piaggio selected ToolsGroup because of its experience in the automotive market, the robustness and power of the SO99+ solution, and the added attraction of ToolsGroup’s structured support procedures. The system was installed at Piaggio with the following objectives:
Within weeks, ToolsGroup completed a logistics assessment that defined the improvements that could be expected from introducing new planning techniques. It measured the service level offered in various markets, for various categories and for each management policy (supplier constraints, service constraints, etc.). This phase fixed the “starting point” (including performance and running costs) and identified the margin improvement obtainable by employing “Stock Mix Optimization”. It also calculated the transition period needed to bring inventories from baseline to target, thereby estimating the ROI of the entire the project.
Piaggio now has just two planners managing 200,000 SKU-Locations and optimizing the inventory for more than 50,000 products with a variety of characteristics in terms of volume, price, cost, etc. Piaggio’s spare parts and accessories distribution network consists of a central warehouse located in Italy and 4 peripheral warehouses, located in France, Spain and Greece. Piaggio also recently implemented an additional license in the United States.
The implementation included user training on how and where to intervene to avoid monitoring all 200,000 different SKU- Locations every day. This “intervention by exception” approach represented a major process change enabled by the new system.
Within twelve months, Piaggio achieved:
Piaggio acquired motorcycle manufacturers Aprilia and Moto Guzzi. During the acquisition, Aprilia was migrated from their existing Baan ERP system to a new ERP SAP system. During the transition process, Aprilia experienced a decline in service levels. ToolsGroup’s SO99+ inventory optimization software was added to Aprilia’s SAP system to re-balance inventory and meet customer demand. Within six months, Aprilia exceeded their previous service levels, while reducing overall operational costs.