Case Study: Applied Materials achieves $10M+ annual cost savings while meeting SLA response-time targets with Solvoyo’s Elevation network design

Reduce Costs Through Supply Chain Network Design

Applied Materials, the global leader in equipment, services and software for semiconductor and display manufacturing, faced escalating costs and needed to rationalize its time‑critical North American service network of more than fifty locations. To reduce spare‑parts inventory and transportation spend while meeting multi‑tier SLA response times, Applied Materials engaged Solvoyo and its Elevation platform for strategic network design.

Solvoyo used Elevation to design an agile service‑parts network—modeling over 600 vendors, 45,000+ after‑sale products and nine service centers—optimizing network size, DC assignments, SKU safety stocks and a cost‑to‑serve tradeoff that included fixed/variable operations, inventory and delivery costs. The Solvoyo solution delivered measurable impact: Applied Materials realized in excess of $10 million in annual savings while achieving required SLA response times (recognition of the work appeared in Interfaces).

Applied Materials