Renault has No Time to Spare
Customer Company Size
Large Corporate
Region
- Europe
Country
- France
Product
- Blue Yonder’s Luminate™ Planning suite
Tech Stack
- Inventory Management Software
- Supply Chain Management Software
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
Technology Category
- Functional Applications - Inventory Management Systems
- Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
- Automotive
Applicable Functions
- Logistics & Transportation
- Procurement
Use Cases
- Supply Chain Visibility
- Inventory Management
Services
- Software Design & Engineering Services
- System Integration
About The 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.
The 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.
The 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.”
Operational Impact
Quantitative Benefit
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