Case Study

Large Automotive Parts Retailer Improves Inventory Efficiencies Through Supply Chain Network Optimization

Large Automotive Parts Retailer Improves Inventory Efficiencies Through Supply Chain Network Optimization

Pages 5 Pages

A large automotive parts and tire retailer partnered with enVista to fix overstocks, poor forecasting and inefficient replenishment across 750 stores and multiple DCs. enVista redesigned the supply chain using network optimization, introducing a two-DC cross-dock with 31 spokes and increasing store delivery frequency. Inventory was reduced through SKU rationalization, better positioning of stock and new replenishment policies. Results included up to 9.7 percent sales increases in test markets, a $28.2 million SKU reduction, a $24.6 million working capital decrease and 60 percent higher inventory turns, while also improving logistics costs and operational efficiency.

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