Case Study: Leading Automotive Manufacturer achieves €18M recurring (4%) and €11M long-term (7%) Total Cost-to-Serve savings with Solvoyo Strategic Network Design

Leading Automotive Manufacturer company - Customer Case Study

Leading Automotive Manufacturer company faced a complex aftermarket supply chain—400,000+ parts, 18 DCs, 1,700 supplier locations and 16,000 dealers—with overlapping DCs and cross-dock networks, the wrong inventory mix, and fragmented contracts with the same 3PLs and carriers. They engaged Solvoyo for Strategic Network Design, using its cloud-based analytics platform/digital twin to optimize the spares network with a Total Cost to Serve objective.

Solvoyo consolidated master data, built a web-based digital twin from 100M transaction records, and ran 120+ scenarios to refine the service strategy, recommending flow consolidation, common contracts and selective DC openings/closures. The work produced recurring annual savings of 4% of Total Cost to Serve (≈€18M) from flow optimization and an additional 7% cumulative net savings (≈€11M) from network reconfiguration, enabling prioritized short- and long-term actions with quantified service and cost impacts.