Blue Yonder Case Studies Renault has No Time to Spare

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	Renault has No Time to Spare Blue Yonder

Renault has No Time to Spare

Blue Yonder

Technology Category	Functional Applications - Enterprise Resource Planning Systems (ERP) Functional Applications - Inventory Management Systems
Applicable Industries	Automotive
Applicable Functions	Logistics & Transportation Procurement
Use Cases	Inventory Management Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
Challenge	Renault, a European automotive company, has built a reputation for quality, innovation, and service. A critical part of this equation is the automaker’s spare parts business. They pledge to deliver any one of 200,000 spare parts overnight through a multi-echelon distribution network. Renault maintained multiple layers of redundant safety stock in order to meet its overnight delivery promise even though its own supplier lead times range from two to eight weeks. Renault wanted to reduce inventory levels to free up cashflow without degrading its spare parts delivery commitment. Renault’s spare parts operations are supported by two master warehouses and a network of dozens of distribution centers scattered across Europe. Historically, Renault was able to honor its customer overnight delivery commitment by maintaining high spare parts inventory levels across its complex European distribution network, which includes up to five tiers of suppliers, dealers and regional distribution centers. This required stocking large amounts of redundant safety stock since supplier lead times vary from two to eight weeks. This was costly. Read More
About Customer	Renault is a European automotive company that has built a reputation for quality, innovation, and service. A critical part of this equation is the automaker’s spare parts business. They pledge to deliver any one of 200,000 spare parts overnight through a multi-echelon distribution network. Renault’s spare parts operations are supported by two master warehouses and a network of dozens of distribution centers scattered across Europe. The company has a complex European distribution network, which includes up to five tiers of suppliers, dealers and regional distribution centers. Renault is focused on innovation and was looking for a major breakthrough in their spare parts logistics. Read More
Solution	When Renault decided to free up cashflow by reducing inventory levels, without impacting their overnight delivery promise, they looked for technology help. They found it in Blue Yonder’s Luminate™ Planning suite. The Blue Yonder solutions have allowed Renault to achieve a centralized calculation of inventory drivers, replenishments and forecasts while also being able to understand the local nuances of its distribution centers. Renault has been able to maintain its same levels of product availability while dramatically reducing its redundant safety stocks. Renault’s focus on innovation was also an important consideration. “Blue Yonder has a product that is very famous in retail. We wanted to bring the best ideas in retail to our spare parts logistics. We were looking for a major breakthrough, and we wanted to make it happen quickly.” Read More Log in to view content
Contents

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Functional Applications - Inventory Management Systems

Applicable Industries

Automotive

Applicable Functions

Logistics & Transportation

Procurement

Use Cases

Inventory Management

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

Challenge

Renault, a European automotive company, has built a reputation for quality, innovation, and service. A critical part of this equation is the automaker’s spare parts business. They pledge to deliver any one of 200,000 spare parts overnight through a multi-echelon distribution network. Renault maintained multiple layers of redundant safety stock in order to meet its overnight delivery promise even though its own supplier lead times range from two to eight weeks. Renault wanted to reduce inventory levels to free up cashflow without degrading its spare parts delivery commitment. Renault’s spare parts operations are supported by two master warehouses and a network of dozens of distribution centers scattered across Europe. Historically, Renault was able to honor its customer overnight delivery commitment by maintaining high spare parts inventory levels across its complex European distribution network, which includes up to five tiers of suppliers, dealers and regional distribution centers. This required stocking large amounts of redundant safety stock since supplier lead times vary from two to eight weeks. This was costly.

About Customer

Renault is a European automotive company that has built a reputation for quality, innovation, and service. A critical part of this equation is the automaker’s spare parts business. They pledge to deliver any one of 200,000 spare parts overnight through a multi-echelon distribution network. Renault’s spare parts operations are supported by two master warehouses and a network of dozens of distribution centers scattered across Europe. The company has a complex European distribution network, which includes up to five tiers of suppliers, dealers and regional distribution centers. Renault is focused on innovation and was looking for a major breakthrough in their spare parts logistics.

Solution

When Renault decided to free up cashflow by reducing inventory levels, without impacting their overnight delivery promise, they looked for technology help. They found it in Blue Yonder’s Luminate™ Planning suite. The Blue Yonder solutions have allowed Renault to achieve a centralized calculation of inventory drivers, replenishments and forecasts while also being able to understand the local nuances of its distribution centers. Renault has been able to maintain its same levels of product availability while dramatically reducing its redundant safety stocks. Renault’s focus on innovation was also an important consideration. “Blue Yonder has a product that is very famous in retail. We wanted to bring the best ideas in retail to our spare parts logistics. We were looking for a major breakthrough, and we wanted to make it happen quickly.”

Impact #1	Renault was able to maintain its same levels of product availability while dramatically reducing its redundant safety stocks.
Impact #2	The company achieved a centralized calculation of inventory drivers, replenishments and forecasts while also being able to understand the local nuances of its distribution centers.
Impact #3	Renault was able to bring the best ideas in retail to their spare parts logistics.

Impact #1

Renault was able to maintain its same levels of product availability while dramatically reducing its redundant safety stocks.

Impact #2

The company achieved a centralized calculation of inventory drivers, replenishments and forecasts while also being able to understand the local nuances of its distribution centers.

Impact #3

Renault was able to bring the best ideas in retail to their spare parts logistics.

Benefit #1	Significantly reduced safety stock and improved cashflow without degrading its overnight spare parts delivery commitment.
Benefit #2	Centralized replenishment planning across multi-tiered distribution network, providing global visibility to all stock across every DC.
Benefit #3	Met less than one-year ROI target through reductions in total inventory.

Benefit #1

Significantly reduced safety stock and improved cashflow without degrading its overnight spare parts delivery commitment.

Benefit #2

Centralized replenishment planning across multi-tiered distribution network, providing global visibility to all stock across every DC.

Benefit #3

Met less than one-year ROI target through reductions in total inventory.

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Overview

Renault has No Time to Spare

Operational Impact

Quantitative Benefit