Auto parts maker to amp inventory turns, service levels; gear for growth.
BuyAutoParts has selected a new forecasting and planning platform.
The company announced recently that Vanguard Software will deliver a fully automated cloud solution for Sales & Operations Planning designed to scale with continued, aggressive expansion.
BuyAutoParts was founded in 1989 as a steering rack remanufacturer and auto parts distributor. Today, the company draws roughly 90 percent of revenue from a targeted set of product lines that include replacement turbochargers, air conditioning parts, steering racks, and suspension components.
As of 2015, BuyAutoParts had 189 employees, $52.9 million in revenue, and a 3-year growth rate of 157 percent. The company has been listed on the Inc. 5000 every year since 2011.
As a distributor, BuyAutoParts competes on service level, or its ability to fulfill orders correctly and on time. As the company has grown, so has the complexity of its supply chain, and the need to boost forecast accuracy and optimize inventory levels to maintain and improve service levels. According to the company, Vanguard Software demonstrated all of those abilities, plus advanced-analytic technology geared for powerful what-if analysis, and for the forecasting of products with intermittent demand and other difficult traits.
In fact, during the due diligence process, Vanguard’s un-tuned, pre-operational demo system produced more accurate forecasts than BuyAutoParts’ fully tuned previous system – a testament to 22 years of R&D says Vanguard management.
In addition to advanced analytic chops, BuyAutoParts decision makers were impressed with Vanguard Forecast Server’s workflow design and user interface, which they said would best empower non-technical business users.
“One of our main goals was software with which an inventory planner could easily and accurately manage forecasts and large sets of data,” said Cameron Yee, Senior Business Analyst for BuyAutoParts. “Vanguard’s forecasting software was built with the end user in mind, including those who do not have a statistical background.”
Prior to Vanguard, BuyAutoParts relied on a team of data analysts, manual computing, and many labor hours. When all was said and done, there was still none of Vanguard’s reporting capability to quickly identify poorly forecast SKUs or track forecast performance over time, Yee said.
- 15 percent drop in stock-outs and lost sales, year over year
- 20 percent improvement in inventory turns
- 50 percent drop in weekly labor hours dedicated to forecast preparation and management
- Maintenance of 5 percent forecast accuracy rate
- 500 percent to 1000 percent ROI
The BuyAutoParts parent company was established in 1989 and is headquartered in San Diego, CA. BuyAutoParts.com launched in 2001 as one of the first online retailers of replacement auto parts. The BuyAutoParts mission is “to make it easy to BuyAutoParts” that are guaranteed to fit your automobile. Today, BuyAutoParts is one of the leading auto parts distributors worldwide.
About Vanguard Software
Vanguard introduced its first product for decision support analysis in 1995. Today, thousands of companies across every major industry and more than 60 countries rely on Vanguard Integrated Business Planning (IBP), forecasting, and advanced analytic solutions.