Case Studies > Buy Auto Parts

Buy Auto Parts

Customer Company Size

Large Corporate

Product

Vanguard Predictive Planning

Tech Stack

Advanced Analytics
AI Engine
Unified High-Performance In-Memory Object (UHIO) database

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Revenue Growth
Customer Satisfaction
Productivity Improvements

Technology Category

Analytics & Modeling - Predictive Analytics
Application Infrastructure & Middleware - Data Exchange & Integration
Functional Applications - Inventory Management Systems

Applicable Industries

Automotive
E-Commerce

Applicable Functions

Warehouse & Inventory Management
Business Operation
Logistics & Transportation

Use Cases

Inventory Management
Predictive Replenishment
Supply Chain Visibility

Services

Software Design & Engineering Services
System Integration

About The Customer

Buy Auto Parts is one of the leading online auto parts distributors worldwide. They are dedicated to making it 'Easy to Buy Auto Parts' by focusing on high order fulfillment. The company manages a complex supply chain with over 100,000 parts sourced through three distinct channels: domestic suppliers, international shipments, and drop-ship options. Their planners had to make educated guesses on which channel to use based on demand forecasts, which often led to inefficiencies and high inventory holding costs. The company recently underwent an ERP conversion and was looking for a scalable, efficient solution to streamline their supply chain management and improve forecast accuracy.

The Challenge

One of the leading online auto parts distributors worldwide faced challenges managing a very complex supply chain with three distinct sourcing channels. With a mission to make it 'Easy to Buy Auto Parts,' they focused their planning efforts on high order fulfillment. This meant they planned to keep in stock, come rain or shine whether through a domestic supplier, an international shipment, or the drop-ship option! When it came to stocking over 100,000 parts, planners at Buy Auto Parts would make their best guess as to which channel to choose to source each item. If they anticipated large, long-term demand, they would source the materials from an international supplier, whose lead times were longer but costs were low. If there was medium demand on the horizon, planners would choose to source domestically at higher cost. For the short term, small bursts in demand, planners would opt to drop-ship the item from a domestic supplier, incurring even higher shipping costs but shortening the lead time and reducing carrying costs. Whatever it took to keep the needed items in stock. Doing all this work in spreadsheets became disjointed and error-prone. Buy Auto Parts was carrying a lot of cash in inventory because their planners were having trouble matching the demand curves to their inventory plan, and would lean toward fulfillment when unsure.

The Solution

Buy Auto Parts approached Vanguard Software with its current state of challenges and was quickly impressed with the scalability of the unified planning platform. Having just gone through an ERP conversion, they were weary of yet another implementation cycle. However, Vanguard surprised them with a straight-forward, three-month timeline, and delivered on time and on budget. Results were visible from the beginning. The ability to handle an immense library of SKUs, provide end-to-end visibility to the supply chain, and most importantly, auto-assign materials to one of the three supply source categories (international, domestic, and dropship) was a game-changer. Planners and business analysts were quickly able to understand the sales cycle curves, and trusted the tool to handle the lead and cost variations between categories. Through a combination of advanced analytics forecasting and human expertise, Buy Auto Parts no longer needed to rely on the best guesses of their planners to maintain customer fulfillment rates. Buy Auto Parts particularly valued Vanguard Software’s ability to manage intermittent demand, seasonal demand, and provide an easy way to supersede products or move demand to a new channel. With improved forecast accuracy, they were able to take a leaner approach to stocking inventory, ditching the old habits of overstocking just to avoid stockouts.

Operational Impact

Buy Auto Parts was able to reduce their inventory holding costs by 10% while growing sales 13% within the first year.
Their reduction in inventory was balanced by continued high fulfillment rates, avoided lost sales, and happy customers.
They were able to re-invest the cash into the business and grew 13% in sales in 2018.
At the end of the day, Buy Auto Parts left with a huge 528% return on their investment into Vanguard Predictive Planning - a fast, reliable, accurate planning platform that provided end-to-end visibility at all levels of their supply chain, and helped them achieve breakaway performance.

Quantitative Benefit