Subaru of New England Reduces Inventory Levels by 44% With Servigistics; Web-based Service Parts Logistics System Enables Inventory Optimization, Improved Customer Satisfaction
18 December 2000
Subaru of New England Reduces Inventory Levels by 44% With Servigistics; Web-based Service Parts Logistics System Enables Inventory Optimization, Improved Customer Satisfaction
MARIETTA, Ga.--Dec. 18, 2000--Servigistics, Inc., a leading provider of Web-based supply chain planning and forecasting solutions, today announced that Subaru of New England, a leading regional automotive distributor, has realized dramatic cost savings and customer service improvements since deploying Servigistics PartsPlan in December of 1999.With inventories of thousands of parts required to support a network of more than 60 Subaru automobile dealers, Subaru needed a service parts planning system that would ensure having the right part at the right location and at the right time. With Servigistics, Subaru has significantly lowered its service parts inventory while continuing to maintain exceptional service levels.
"Our main objective was to reduce our inventory without compromising parts availability. Not only have we reduced our inventory level by 44%, but we also increased our fill rate and dramatically simplified ordering with the Servigistics software," said Sean Perry, senior inventory control manager of Subaru of New England.
"For example, we used to carry over 100,000 oil filters -- a number which has now been reduced to about 24,000 for a savings of around 76%," concluded Perry.
"Although Subaru chose Servigistics primarily to reduce their inventory levels, the ease of use and versatility of our solution also played a major role in their decision," said Michael Israel, executive vice president of sales and marketing for Servigistics.
"In the highly competitive, low-margin automobile industry, it is imperative that the service parts business be highly profitable without impacting customer satisfaction. Our Web-based software is very intuitive and easy to navigate. In addition, Subaru was able to interface Servigistics PartsPlan with their existing ERP system and field the total solution with virtually no disruption to their dealerships," concluded Israel.
Focused exclusively on issues related to spare parts planning and forecasting, Servigistics provides complete functionality -- from strategic analysis to tactical planning. The software enables companies to perform what-if analysis, forecast demand, set optimal stock levels, and identify excess inventory and critical shortages. In addition, it recommends optimal procurement, repair, and replenishment orders.
In the second phase of its implementation, Subaru of New England plans to take advantage of the Servigistics Web-based software to improve parts planning for 60 dealerships. According to their plan, parts managers at each dealership will be able to review and approve recommended replenishment orders over the Web. Servigistics is designed to optimize field stock with its ability to handle low-volume demand, calculate Authorized Stock Lists (ASLs), and establish configurable rounding rules. This enables it to provide a collaborative solution that includes the complete supply chain. For Subaru of New England, this means that many of the same benefits realized in managing the central inventory will be seen by the dealerships as well.
About Subaru of New England
Founded in 1971 by Ernest Boch, CEO and owner, Subaru of New England, headquartered in Norwood, Massachusetts, is a privately owned distributorship with 60 franchised dealerships that exclusively sell and service Subaru products. Subaru of New England's dealers include some of the most financially successful operations and consistently sell close to 16% of all Subaru vehicles and parts sold in the United States.
About Servigistics
Servigistics' Web-based service parts planning and forecasting software optimizes inventories for immediate customer satisfaction and ROI returns. Architected for complete flexibility, Servigistics facilitates change to accommodate fluctuating business requirements and enables planning for any service organization, from the central warehouse to trunk stocking locations. Easy to implement and integrate to host inventory systems, Servigistics provides the Fastest Time-to-Benefit. Eliminating complexity and offering adaptability, Servigistics offers customers the lowest cost parts optimization tool for short- and long-term results. Contact Servigistics at 770/565-2340, via e-mail at info@servigistics.com or on the web at www.servigistics.com.