IRVING, Texas--(BUSINESS WIRE)--Neovia Logistics, a global supplier of logistics services, has been recognized as a top 100 supply chain partner in the 2017 Supply & Demand Chain Executive 100 Awards. Neovia received this honor for its forward-thinking inventory optimization solutions implemented for a strategic partner of over two decades. The SDCE 100 is a yearly competition designed to recognize the industry’s leading service providers of transformational supply chain solutions for small, medium or large-sized companies.
The goal of Neovia’s project was to optimize the customer’s entire multi-echelon spare parts supply chain by transitioning them to best-of-breed SAP for Service Parts Planning (SPP) inventory system.
By utilizing Neovia’s proprietary SPP inventory simulation technology, the Neovia team was able to test millions of parameters and configuration combinations to determine optimal solutions. An extensive parallel test validated these settings along with system performance, allowing prominent results right from go-live. This approach removed costly trial-and-error and generated no major system outages or negative impacts to customer service.
Within just the first six months of the program, the client saw a 7.1% reduction in total supply chain inventory, a .5% increase in global network facing fill rate, a 20% reduction on dealer back orders, a 6.3% increase in forecast accuracy and a 30% reduction in air freight costs. Overall, the client gained $20 million in improved cash flow within six months.
“We are proud of this particular achievement because it shows not only the strength of our inventory optimization technology, but the power that comes from having a logistics partner who thinks like our customers do,” said Neovia CEO Pat Olney. “We were able to deliver substantial results for the client quicker and more efficiently than the competition because our OEM heritage helps us truly understand our customers and form deep, integrative relationships.”
Due to the solid foundation provided by the SAP Service Parts Planning solution, Neovia is now able to add enhanced functionality and additional capabilities to the supply chain to drive even greater future benefits for the customer. To learn more about Neovia’s unique inventory optimization services, visit https://www.neovialogistics.com/services/inventory-optimization/.
Neovia is a global leader in third-party logistics, operating more than 100 facilities in 25 countries around the world. For 30 years, Neovia has combined its OEM mindset with real-world innovation to solve complex logistics challenges for companies in the automotive, industrial, aerospace and technology sectors. Neovia works with companies of all sizes throughout their lifecycle as a partner, advisor and enabler of transformation. The company offers a full suite of services, including service parts logistics, inbound logistics and finished goods distribution offerings as well as value-added services such as inventory optimization and transportation management. For more information about Neovia, visit www.neovialogistics.com.