Optimization of logistics concepts in the automotive spare parts business

Initial Situation and Project Context

The customer is a major, nationally active parts distributor operating a sophisticated logistics network that includes a central warehouse, multiple regional locations, and a large base of B2B customers – primarily repair shops and fleet operators. Logistics constitutes a key competitive differentiator, since delivery speed, product availability, and delivery reliability directly drive customer satisfaction and overall market success.

Prior to the project, the customer faced the challenge that its existing logistics and delivery concepts were no longer adequately meeting the rising market demands. In particular, expanding product ranges, increased delivery frequencies, and mounting cost pressures necessitated a comprehensive review of the entire existing supply chain.

Assignment and Objectives

The project scope encompassed the optimization of the entire supply chain – from the central warehouse through the regional branches all the way to customer delivery. The objective was to make logistics processes significantly more efficient, to reduce picking and throughput times, and at the same time to further develop delivery frequency in line with current market requirements.

The focus was on:

  • increasing operational efficiency,
  • the reduction of process variants,
  • as well as the creation of a solid foundation for further growth.

Specific challenge: Heterogeneous establishment processes

One of the key challenges was the existence of widely varying, historically grown processes at the different branch locations. Despite all sites belonging to the same formal organization, procedures, roles and responsibilities, and steering mechanisms differed considerably from one branch to another.

This heterogeneity led, among other things, to:

  • highly varying packing times,
  • inconsistent delivery quality,
  • limited comparability of performance indicators,
  • as well as increased coordination efforts between headquarters and branches.

A purely theoretical standardization would not have achieved the desired outcome here. What was required was a deep understanding of the operational reality at each individual branch.

Approach and Role of the Consultants

The project team adopted a structured yet highly pragmatic approach. In the initial phase, a detailed analysis of the current logistics and order-picking processes was carried out across the full end-to-end supply chain. Rather than focusing purely on metrics and KPIs, the emphasis was placed primarily on deeply understanding the real day-to-day operational processes at the ground level.

Based on this, the following were:

  • comparable process models were developed,
  • best-practice approaches from high-performing branches were identified,
  • and defined realistic target processes that took both efficiency and feasibility into account.

Rather than acting solely as analysts, the consultants took an active role in coordinating and aligning the central office, logistics department, and branch locations. As a result, acceptance of the planned changes could be built at an early stage.

Results and impact achieved

As a result, a harmonized logistics concept was developed that defines clear process standards while still allowing sufficient flexibility for location-specific particularities. Packing times were significantly reduced, delivery frequencies were better aligned with actual customer needs, and transparency across the entire supply chain was markedly increased.

Furthermore, a solid foundation was created for:

  • a unified control of logistics performance,
  • future automation and scaling steps,
  • as well as improved cooperation between headquarters and branches.

Conclusion:

The project demonstrates that sustainable optimizations in the spare parts logistics business are only successful when market understanding, process expertise, and operational experience come together. It is precisely at this intersection that the work of aftermarket experts begins.

If your organization is facing similar challenges, a more in-depth exchange is worthwhile.