Case Study: Leading Tier 1 Automotive Company improves working capital efficiency with Xtivity Pulse

Leading Tier 1 Automotive Company Improves Working Capital Efficiency

Leading Tier 1 Automotive Company, a Fortune 500 Tier 1 automotive supplier with more than 15,000 associates across 50+ facilities in 10+ countries, was focused on reducing operating costs and improving working capital efficiency. As MRO inventories grew, the company faced higher investment, warehousing, and administration costs with little improvement in maintenance and reliability. Xtivity was brought in to help address these inventory challenges with its Pulse inventory optimization software.

Xtivity implemented Pulse, a SaaS, hosted inventory optimization solution that analyzes transactional data to determine appropriate order points, order quantities, and lead times for MRO items. The result was a 11% net reduction in inventory holdings, a 15% net reduction in maximum stocking levels, and an 11% net reduction in minimum stocking levels, while also improving service levels and parts availability.