Inventory Configuration
Aftermarket parts distributor refines inventory strategy to increase order-fill and revenue from stock.
An automotive aftermarket parts distributor partnered with SCPI to rethink its stocking strategy across a multi-node distribution network — improving service performance and order fill without inflating inventory. SCPI replaced the legacy classification with an activity-based ABCD segmentation, refined the stocked assortment to focus on the items driving the most revenue and order completeness, and evaluated consolidation scenarios across multiple DCs.
The new model increased revenue from stock, expanded service while consolidating inventory, and transitioned the business to activity-based planning.
Challenge
- The existing stocking strategy wasn't keeping up with service demands across multiple DCs.
- The business needed better fill rates without adding inventory or sacrificing order completeness.
Approach
- Built an activity-based inventory classification and aligned stocking policies to service and order metrics.
- Evaluated deployment scenarios to improve stock parity and network efficiency.
Results
- Identified 3% revenue increase from stock.
- Expanded service with 6-15% inventory consolidation.
- Transitioned to activity-based planning.