Sports Car Co.

An Aftermarket SCP Case Study

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Highlights
  • Challenging target: raise service level from 70% to 90%
  • Single planner generates replenishment plans for 20,000 items
  • Major improvements despite 20% increase in parts catalog

Project and Objectives

ToolsGroup’s SO99+ was selected when this automotive manufacturer identified the need for an advanced planning system for its Spare Parts Division, whose central warehouse serves worldwide demand.

Their goal was service level excellence, as compared with automotive product lines with many slow moving parts. Management set a challenging target: raise the spare parts service level from 70% to 90% within two years, without increasing inventory levels.

The requirement called for a system with the following characteristics:

  • integrated demand modeling, inventory and service levels management;
  • ability to correct the warehouse inventory mix to address service;
  • requirements planning capabilities;
  • compliance with legacy transaction systems & portability to other systems.

The SO99+ project involved one resource from the customer (a planner) and two from ToolsGroup (project manager and consultant).

Day-to-Day

SO99+ was installed and interfaced with the AS400-based legacy system. Following system tuning, during the first six months, with only a single planner, the tuned system generated monthly replenishment plans for over 20,000 items, most of them slow movers.

Implementation of a new ERP system started shortly afterward. The interface to SO99+ was moved to the new ERP without any system downtime.

Results & Benefits

Within about two years, despite a 20% increase in the product range, the Spare Parts Division inventory and service levels were improved as follows:

The Spare Parts Division has since targeted a 94% service level and SO99+ has since been extended to cover spare parts for a second brand.

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This automotive company, with one of the best known and most highly respected brands in the world, has manufactured high-end sports and GT cars for more than 50 years.

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