Recent Case Study
Dealer Parts Inventory Optimization
Executive Summary
The client for this case study is a Tier 1 global automotive manufacturer and seller in the USA. This case study is from our experience for a marquee Automotive account of InterraIT in the sub-domain of After-Sales Service Parts Management by the Dealers – this solution reduces Idle Stock generating significant cost savings for the dealers.
Domain Map
- InterraIT has been using its business-IT services for decades to Automotive OEM customers in many sub-domains, especially After-Sales services (e.g., Dealer Operations, Services, Warranty Management etc.), Logistics, Sales & Marketing and Value-Added Services.
- Such services include development/ enhancement of specific Automotive Business Solutions, 24×7 Application Management Services, 24×7 IT Infrastructure Management etc. All these services have Automotive domain knowledge embedded and are aimed at reducing the OpEx cost of the customer while enhancing operational efficiency.
Business Challenges
- Sometimes dealers accumulate items which are not being in demand by the customers and becomes idle over the time.
- Such items are not only un-necessary stocking to the dealers (locking cost and space both), but also consumes are storage area which could have been utilized by in-trend part numbers
Solution Provided by InterraIT
Publishing daily Idle Stock report:
- This is the daily Idle Stock report which lists all parts which have become idle.
Publishing daily Pre-Idle Stock report:
- This is the daily Pre-Idle Stock report which lists all parts which will become idle soon.
- It helps dealers to deal with the parts before they become Idle.
Publishing daily Pre-Idle Stock report:
- Calculating Idle Stock Percentage over total Stocks.
- Quarterly bonus allocation to dealers based on Idle Stock percentage in case Idle Stock percentage is within certain range.
- The quarterly bonus motivates the dealers to keep Idle Stock percentage low
Business Benefits
Benefits to Automotive Company
- Reducing idle inventory from MNAO network.
Benefits to Dealers:
- Reducing dealer stocking cost by reducing Idle Stocks from dealer inventory.
- Direct financial benefits in form of quarterly bonus.
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