Consumer Electronic Manufacturer
Service Parts Network Optimization to Reduce Costs
45,000 SKUs
600+ Vendors
9 DCs
Goals
Rationalize time-critical service network in North America serving several hundred high-value semiconductor equipment
Reduce Total Cost to Serve to comprise multi-echelon spare parts inventory investment, handling costs, and expediting costs while meeting or exceeding service level agreement (SLA) targets
Challenges
Escalating costs in time-critical service networks
No quantitative basis for network-wide improvement initiatives
Benefits
Determined the optimal size of the service network and the role for each facility
Assigned service locations to DCs and set optimal safety stock levels
Achieved $10 million total savings that Applied Materials reported publicly
$10 M
Total Savings
Solutions
Cassio Conceicao
Vice President
Global Services
"The Strategic Network Design project with Solvoyo succeeded in shifting our “inventory-centric” perspective to one of “total-cost optimization.” We have consolidated our depots leading to significant infrastructure cost savings as well as a sustained inventory reduction of $5 Million."
5/5
