Following a policy reform in the European Union, all motor traders were granted better access

Following a policy reform in the European Union, all motor traders were granted better access to
technical information, training, repair shop equipment and original spare parts. Consequently, as market
competition increased, the aftermarket operations of automotive manufacturers faced increasing
pressure. To overcome new market threats, one of the world’s most successful manufacturers of
premium passenger cars transformed their aftermarket logistics platform to improve service, enhance
retention and increase part sales.
Customer challenge
With a distribution model configured around a single warehouse, the automotive manufacturer’s service
centers received only one parts delivery each working day. Automotive parts were held in a centrally
located warehouse where orders were taken until 18:00 each day for them to be delivered to service
centers by 8:00 the following day. Because of this, whenever an additional problem was diagnosed in
the service center, the end-customer had to make a return visit or the service center would hold the
vehicle for an additional day for the required parts to arrive. Both scenarios, however, did not fulfill the
levels of satisfaction demanded by its end-customers. To resolve this, the manufacturer in Poland
redesigned its aftermarket logistics operations, developing a network of strategic local distribution
centers that provided same-day parts deliveries.
Tasks:
1. Redesign the aftermarket logistics operations by increasing customer satisfaction.
2. Establish customer satisfaction measures and measuring process (who, when, how).
3. Provide cost effective solution for spare parts inventory management.