Mazda, Service Parts Supply Chain Management case study | Syncron

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Since the early 1990s, Syncron has helped Maz- da Motor Logistics Europe (MLE) achieve high cus- tomer-service levels and outstanding inventory turnover — thanks to a fully automated demand forecasting and repleish- ment planning process. Mazda is now about to further optimize its supply chain with an upgraded ver- sion of Syncron’s solution. Mazda ex- pects that extended supply chain vis- ibility will improve inventory turnover and service levels even more. Extensive history with Syncron MLE has been running Syncron’s DFRP solution since the early 1990s. Today, Mazda’s inventory management is entirely demand driven. “We’re de- lighted with our close relationship with Syncron,” says Jean-Marie Van delm, general manager, Parts Supply and Logistics group at MLE. “They are a reliable supplier that truly under- stands our business.” Streamlined operation with stable results With a fully automated process, MLE’s inventory planning is a very slim op- eration, by industry standards. With limited user interaction, the planning unit automatically accepts Syncron- proposed order suggestions that are based on actual demand throughout the region. Orders are sent to Ja- pan daily. The dealer network rates Mazda’s service levels very favorably. “Due to the Syncron solution, we’ve enjoyed stable results over many years, while minimizing our efforts,” says Van delm. “We continually report high availability, with customer service levels of 96% and an inventory turnover rate of below 4.” For more information about Syncron and its solutions, visit www.syncron.com. Mazda drives extended supply chain visibility The challenge With a network of sites supplying 28 distribution centres throughout Europe, Mazda wanted to fur- ther improve their service parts availability while keeping inven- tory levels to a minimum. Mazda sought to expand their existing Syncron solution to cover their regional distribution centres and dealers. The solution Syncron’s Global Inventory Management solution The results Extended supply chain visibil- ity into regional distribution centres and dealer inventories Automated process for balanc- ing overstock with understock between inventory points Further improvements in inventory turnover Additional improvements in customer service levels About Mazda Headquartered in Hiroshima, Japan, Mazda is one of the best known car manufacturers in the world, with major production facilities spanning 12 countries. From their central warehouse in Willebroek in Belgium, Mazda has distribution centres in Austria, Spain and the UK, supplying 28 distributors, delivering to an extensive dealership network across Europe. Find out more at www.mazda.com SYNCRON CASE STUDY

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With a network of sites supplying 28 distribution centres throughout Europe, Mazda wanted to further improve their service parts availability while keeping inventory levels to a minimum. Mazda sought to expand their existing Syncron solution to cover their regional distribution centres and dealers.

Transcript of Mazda, Service Parts Supply Chain Management case study | Syncron

Page 1: Mazda, Service Parts Supply Chain Management case study | Syncron

Since the early 1990s, Syncron has helped Maz-da Motor Logistics Europe (MLE) achieve high cus-tomer-service levels and outstanding inventory turnover — thanks to a fully automated demand forecasting and repleish-ment planning process.

Mazda is now about to further optimize its supply chain with an upgraded ver-sion of Syncron’s solution. Mazda ex-pects that extended supply chain vis-ibility will improve inventory turnover and service levels even more.

Extensive history with Syncron

MLE has been running Syncron’s DFRPsolution since the early 1990s. Today,Mazda’s inventory management is entirely demand driven. “We’re de-

lighted with our close relationship with Syncron,” says Jean-Marie Van delm, general manager, Parts Supplyand Logistics group at MLE. “They area reliable supplier that truly under-stands our business.”

Streamlined operation with stable results

With a fully automated process, MLE’sinventory planning is a very slim op-eration, by industry standards. With limited user interaction, the planning unit automatically accepts Syncron-proposed order suggestions that arebased on actual demand throughoutthe region. Orders are sent to Ja-pan daily. The dealer network rates Mazda’s service levels very favorably. “Due to the Syncron solution, we’ve enjoyed stable results over many years, while minimizing our efforts,” says Van delm. “We continually report high availability, with customer servicelevels of 96% and an inventory turnover rate of below 4.”

For more information about Syncron and its solutions, visit www.syncron.com.

Mazda drivesextended supplychain visibility

The challengeWith a network of sites supplying28 distribution centres throughout Europe, Mazda wanted to fur-ther improve their service parts availability while keeping inven-tory levels to a minimum. Mazda sought to expand their existing Syncron solution to cover their regional distribution centres and dealers.

The solutionSyncron’s Global Inventory Management solution

The results● Extendedsupplychainvisibil- ity into regional distribution centres and dealer inventories• Automatedprocessforbalanc- ing overstock with understock between inventory points• Furtherimprovementsin inventory turnover• Additionalimprovementsin customer service levels

About MazdaHeadquartered in Hiroshima,Japan, Mazda is one of the bestknown car manufacturers in theworld, with major productionfacilities spanning 12 countries.From their central warehouse inWillebroek in Belgium, Mazda hasdistributioncentresinAustria,Spain and the UK, supplying 28 distributors, delivering to an extensive dealership network across Europe. Find out more at

www.mazda.com

SYNCRON CASE STUDY

Page 2: Mazda, Service Parts Supply Chain Management case study | Syncron

From client-server to web- based Syncron solution

When Mazda decided to migrate its IT infrastructure from a mainframe environment to UNIX, it assessed various options to simultaneously up-gradeitsDFRPsolution.Afterhavingthoroughly evaluated its options, Mazda found that the new web-basedSyncron Global Inventory Manage-ment solution was best for going forward. “From an IT viewpoint, the Syncron solution is top notch. Our experience is that Syncron is easy toupgrade. We’ve had no implementa-tion issues over the years,” says Vandelm. ”But our main reason for stay-ing with Syncron’s solution is the con-tinuously high parts availability thatwe’ve been able to offer our custom-ers, while maintaining minimal inven-tory levels.”

The future—full supply chain visibility

With the planned upgrade to the Syn-cron Global Inventory Management solution, Mazda expects further op-timizationof itssupplychain.Akeychallenge is lack of visibility into re-gional distribution centres and dealer inventories. When centres eventually implement the Syncron Global Inven-tory Management solution, it will en-able a joint inventory management policy. The system will automatically provide Mazda with information nec-essary for balancing overstock with understock, by pulling back excess inventory to the central warehouse and transferring parts among vari-ous inventory points. “With a multi-echelon inventory management sys-tem,weanticipatefurthersignificantimprovements in inventory turnover, customer-service levels, and ulti-mately, overall sales,” says Van delm.

With 400 employees and more than US$ 5.8 billion in annual sales, MLE inWillebroek, Belgium, is the most im-portant entity in Mazda Europe. Froma central warehouse and regional distributioncentersinAustria,Spainand the UK, the company supplies 28 distributors throughout Europe withMazda parts and accessories, daily. Its central warehouse distributes 60% of the turnover directly to 2,400 dealers across Europe, while distribu-tors process the remaining orders.

For more information about Syncron and its solutions, visit www.syncron.com.

“We anticipate furthersignificant improvementsin inventory turnover,customer-service levels,and ultimately, overallsales.”

SYNCRON CASE STUDYMAZDA

About Syncron

Syncron maximizes global supply chain performance, easily. Our groundbreaking IT solution, lev-eraging existing IT infrastructure, is rapidly implemented. Within six to twelve months, it yields perfor-mance improvements of 20-30% in three major areas: customer service levels, supply chain pro-cess efficiencies and stock levelreductions. We deliver superior results to our customers through combining software expertise with extensive experience from selected industry sectors within manufacturing and distribution. To stay ahead, many world-lead-ing global companies have chosen Syncron:AlfaLaval,AtlasCopco,Electrolux, Metso, Renault Trucks, Sandvik,SmithsAerospace,TetraPak, Toyota, Trelleborg, Volvo and VW. Syncron has offices aroundthe world.

Contact SyncronFor more information and to contact Syncron, please visit syncron.com andchooseyourlocaloffice.