For years, a leading supplier of diesel and gas engines used an off-the-shelf software to manage inventory planning for their aftermarket service parts, ultimately degrading their customer service and inventory turn rates. By turning to Neovia’s proven history of successful clients coupled with its expertise in inventory optimization simulation technology, the supplier sought to not only regain peak performance but produce additional gains as well.
Inventory Optimization Through Simulation
This engine supplier knew that technology alone was not going to correct the shortfalls and desired a source for an unbiased review of their materials management processes, as well as expertise and tools for identifying solutions in these areas and others that they had not anticipated.
overall sales growth
inventory availability escalation
reduction in aftermarket supply chain inventory
increase in inventory turns
Due to a relentless focus on operational efficiency, Neovia was able to infuse best-in-class processes together with its own proprietary inventory simulation technology to increase the engine supplier’s aftermarket performance level without overspending. Neovia used its current client’s inventory performance metrics as a real-world baseline for gauging the standard for competitiveness. That comparison along with optimized parameters discovered through Neovia’s own software, identified opportunities for improvement in fill rate and inventory turnover.
By utilizing Neovia as an unbiased consultant for inventory optimization, the supplier not only regained its position in the marketplace but improved it. The client ultimately achieved augmented sales and increased inventory turns and availability while keeping costs down and reducing total inventory. By the second year of collaboration, Neovia accomplished the client’s operational goals and began identifying opportunities for continuous improvement within the client’s service parts market to drive business forward even further.