Improved inventory management for Buy Auto Parts thanks to CCH Tagetik Supply Chain Planning

The challenge of a complex supply chain process

Managing a complex supply chain process was a significant challenge for one of the leading online auto parts distributors worldwide. This complexity arose from juggling three distinct sourcing channels, which necessitated meticulous planning and execution. Their mission to make it "Easy to Buy Auto Parts" required a strong emphasis on achieving high order fulfillment rates. However, the reliance on spreadsheets for this intricate task proved to be both outdated and fraught with errors. Consequently, Buy Auto Parts found themselves burdened with excessive cash tied up in inventory. Planners were consistently challenged in aligning demand curves with inventory plans; hence they often favored fulfillment. This strategy, while ensuring customer satisfaction in the short term, resulted in inefficiencies and a lack of streamlined operations. Therefore, finding a solution that could seamlessly integrate their extensive supply chain was paramount.

CCH Tagetik Supply Chain Planning solution allows to improve inventory management

Buy Auto Parts approached CCH Tagetik Supply Chain Planning with its challenges and was quickly impressed with the scalability of the unified planning platform. CCH Tagetik Supply Chain Planning surprised them with a straightforward, three-month timeline; the project was not only delivered on time but also adhered strictly to the budget. The impressive ability of the platform to handle an immense library of SKUs enabled Buy Auto Parts to manage their diverse product ranges more effectively, ensuring that their inventory systems could keep pace with the demands of a growing customer base. Most importantly, the system’s capability to auto-assign materials to one of the three supply source categories (international, domestic, and dropship) proved to be a game-changer. This automated categorization eliminated manual errors and significantly boosted efficiency by ensuring that each product was sourced correctly and cost-effectively. Consequently, planners and business analysts were not only able to understand the sales cycle curves more intuitively but also developed increased trust in the tool's ability to manage lead times and cost fluctuations between categories, ultimately improving decision-making processes.

Buy Auto Parts particularly values the ability to manage intermittent and seasonal demand and provide an easy way to supersede products or move demand to a new channel. This flexibility allows them to adjust rapidly to fluctuations in market trends and consumer preferences, thereby maintaining optimal inventory levels throughout the year. This strategic inventory management approach aids in minimizing waste and enhancing sustainability efforts.

Key Benefits Buy Auto Parts Gains from Implementing CCH Tagetik Supply Chain Planning

Gained 528% ROI

After just one year of utilizing CCH Tagetik Supply Chain Planning, Buy Auto Parts reported a 528% return on their investment, an achievement that underscores the profound impact of this strategic tool on their operations. This impressive ROI was achieved through systematic enhancements in efficiency and productivity across their supply chain processes. The platform's robust capabilities allowed the company to optimize inventory management and reduce inefficiencies that previously plagued their system. This formidable return not only highlights the financial benefits of the platform but also illustrates a remarkable transformation in their operational strategies, paving the way for sustained growth and competitiveness in the market.

10% reduction in inventory holding costs

Within the first year of implementing CCH Tagetik Supply Chain Planning, Buy Auto Parts realized a remarkable 10% reduction in inventory holding costs. This substantial decrease in expenses was achieved through streamlined processes that minimized waste and eliminated excess stock, thus enhancing the overall efficiency of their operations. Consequently, the reduction in holding costs also led to a significant release of cash flow, allowing the company to reinvest these savings into other strategic initiatives that further bolstered their competitive edge in the market. By trimming their inventory costs, Buy Auto Parts not only reduced financial strain but also reinforced their ability to adapt swiftly to market changes and customer demands, establishing a robust foundation for future growth.

13% growth in sales 

The 13% growth in sales within the first year following the implementation of CCH Tagetik Supply Chain Planning is a testament to the platform's transformative impact on Buy Auto Parts operations. By optimizing their inventory management, they were able to maintain high fulfillment rates, which ensured that customer orders were met with remarkable precision and efficiency. The strategic reduction in inventory allowed them to free up substantial cash resources, which they aptly reinvested into other business initiatives that fueled their expansion. As a result, not only did the company experience a notable increase in sales, but it also strengthened its market position.

Store and recall data for future forecasts with the help of AI

Having utilized CCH Tagetik Supply Chain Planning for years, Buy Auto Parts has been able to experience AI and machine learning in full force. The platform's advanced capabilities have evolved over time, becoming finely tuned to the unique demands and patterns of their business operations. As Buy Auto Parts continuously inputs data, the system's algorithms become increasingly sophisticated, allowing for more precise forecasting of market trends and consumer behavior. The ability to store and retrieve vast amounts of historical data ensures that their forecast models continuously improve, gaining accuracy with every iteration. Consequently, Buy Auto Parts has leveraged this forecasting power to strategically plan for future demands, reducing the likelihood of being caught unprepared and thus ensuring a resilient and adaptable supply chain strategy.