• Multi Echelon Inventory Optimization

For more than 25 years, Neovia has provided spare parts logistics for a world-renowned British automotive manufacturer of premium all-wheel drive vehicles. In the spirit of continuous improvement, Neovia implemented a new best-of-breed inventory planning solution to replace Neovia’s global, multi-echelon legacy system. Together, Neovia’s proprietary simulation technology and unique inventory planning system could further optimize fill rates and increase the performance of the supply chain.

SAP Service Parts Planning & Neovia's Simulator

SAP’s Service Parts Planning system was specifically developed to meet the complex forecasting, inventory planning, procurement, and distribution requirements of expansive, global multi-facility service parts supply chains. Neovia’s proprietary simulation technology allows clients to test millions of parameter and configuration combinations to determine optimal settings and seamlessly transfers them into the SAP Service Parts Planning production environment.

7.1%

reduction in total supply chain inventory

0.5%

increase global network facing fill

20%

reduction in dealer back orders

6.3%

forecast accuracy improvement

30%

reduction in air freight costs

Challenge

  • Seamlessly replace the legacy inventory planning system
  • Maintain existing parts availability fill rates
  • Provide enhanced functionality and capabilities to drive future benefits
  • Reduce inventory

Solution

Moving to SAP Service Parts Planning offered dramatic improvements and functional enhancements to benefit the client’s network. Neovia ran both systems in parallel for several months to ensure the system performed as expected in the real-world production environment with full inventory volume. Joint like-for-like tests were also conducted to validate forecast statistics, supplier schedules, and deployment volumes across the network.

Results

The implementation was a resounding success producing no major system outages or negative impacts to the client’s customer network. It also drove tremendous results for the client’s distribution network as seen in the results taken 6 months after go-live (above). With the foundation of SAP Service Parts Planning in place, Neovia is now applying additional functionality to drive even greater benefits throughout the spare parts supply chain.

Simulated Results Against SAP Service Parts Planning Parallel

Conclusion

By utilizing Neovia’s simulator together with SAP Service Parts Planning, the team delivered outstanding benefits for an already mature, highly performing supply chain.

Neovia’s successful “Big-Bang” eliminated costly trial and error by leveraging the proven accuracy of the Neovia simulator and near perfect alignment with SAP Service Parts Planning, providing very high confidence in Neovia’s ability to optimize client networks going forward.

Dial Neovia’s simulator for use with SAP Service Parts Planning to match legacy system

Use Neovia’s simulator configurations to set parameters in parallel SAP Service Parts Planning environment

Test differences

Go-live for all facilities with production SAP Service Parts Planning