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FinanceFebruary 03, 2022

Buy Auto Parts Case Study

One of the leading online auto parts distributors worldwide gained 528% ROI with CCH® Tagetik Supply Chain Planning within a year of implementation.

We knew we needed to drive cash out of our inventory and redeploy it to grow our business. CCH® Tagetik Supply Chain Planning helped us accomplish just that.
Renee Thomas Jacobs, CEO, Buy Auto Parts
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The Challenge

One of the leading online auto parts distributors worldwide faced challenges managing a very complex supply chain with three distinct sourcing channels. With a mission to make it “Easy to Buy Auto Parts,” they focused their planning efforts on high order fulfillment. 

Doing all this work in spreadsheets became disjointed and error-prone and Buy Auto Parts was carrying significant cash in inventory as their planners were having trouble matching the demand curves to their inventory plan, and would lean toward fulfillment when unsure.

The CCH Tagetik solution

Buy Auto Parts approached CCH Tagetik Supply Chain Planning with its challenges and was quickly impressed with the scalability of the unified planning platform. CCH Tagetik Supply Chain Planning surprised them with a straight-forward, three-month timeline, and delivered on time and on budget.

Results were evident from the beginning. The ability to handle an immense library of SKUs, provide end-to-end visibility to the supply chain, and most importantly, auto-assign materials to one of the three supply source categories (international, domestic, and dropship) was a game-changer. Planners and business analysts are now quickly able to understand the sales cycle curves and trust the tool to handle the lead and cost variations between categories.

Buy Auto Parts particularly values the ability to manage intermittent and seasonal demand and provide an easy way to supersede products or move demand to a new channel. With improved forecast accuracy, they are able to take a leaner approach to stocking inventory, ditching the old habits of overstocking to avoid stockouts.


Gained 528% ROI with CCH Tagetik Supply Chain Planning within a year of implementation

After just one year of utilizing CCH® Tagetik Supply Chain Planning, Buy Auto Parts reported a 528% return on their investment into the solution

10% reduction in inventory holding costs

Within the first year of implementation, Buy Auto Parts reduced their inventory holding costs

by 10%

13% growth in sales within the first year following implementation

Their reduction in inventory is now balanced by continued high fulfillment rates, avoided lost sales, and happy customers. They were able to re-invest the cash into the business and grew 13% in sales within the first year following implementation

Ability to help their planners swiftly find ways to manage lost demand during the COVID-19 pandemic

CCH Tagetik Supply Chain Planning was able to pinpoint where they lost demand due to supply chain issues, and make sure that they could still cover future forecasts. This would have taken planners months to achieve working in disjointed spreadsheets

Ability to store and recall data for future forecasts

Having utilized CCH Tagetik Supply Chain Planning for years, they have been able to experience AI and machine learning in full force. The more data they put in, the smarter the solution has become about their business, and the more accurate their forecasts
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