Case Study: BorgWarner achieves 98% service levels and $4M inventory reduction with ToolsGroup SO99+

BorgWarner saves millions with SO99+

BorgWarner, a world leader in vehicle electronics and transportation components, faced a large-scale aftermarket parts challenge: customers expect service in the high 90s and parts must be serviceable up to 15 years. The supply chain team needed to cut safety stock while maintaining performance across 59,000 SKUs, about 17,000 order lines per day and 700+ suppliers. BorgWarner engaged ToolsGroup and its SO99+ solution to tackle demand forecasting, inventory optimization and replenishment.

ToolsGroup integrated SO99+ with BorgWarner’s SAP R/3 so parts and inventory data feed into analytic demand models that generate replenishment proposals finalized in SAP. The implementation modeled in‑transit and safety stock to minimize inventory while preserving service, lifting customer service from ~91–92% to 98% (a 6–7 point gain) and reducing inventory from $47M to $43M—a $4M reduction in the first year.

BorgWarner