Case Study: BorgWarner reduces inventory by $4 million and boosts service levels with ToolsGroup

BorgWarner saves $4 million and boosts service levels to 98% with ToolsGroup

BorgWarner, a world leader in vehicle components, faced a major challenge in its aftermarket parts business. Their supply chain team was under pressure to achieve high service levels while simultaneously reducing its $47 million in safety stock. This needed to be accomplished at a massive scale with 59,000 SKUs and over 17,000 daily order lines. They partnered with ToolsGroup to implement its inventory optimization solution.

The ToolsGroup solution was integrated with BorgWarner's SAP system to revamp the replenishment process. It used analytic models on parts data to generate proposals that minimized inventory while maintaining high service levels. As a result, ToolsGroup helped BorgWarner reduce inventory by $4 million to $43 million in the first year and improve customer service levels from 91-92% up to 98%.

BorgWarner