Southeast Toyota Distributors

A comprehensive suite of automated business logic was implemented to streamline and standardize various aspects of parts planning and procurement. This included automation of general parts planning and accessories parts planning, ensuring consistent and efficient handling of both standard and port-installed parts. Dynamic order rounding was introduced to optimize order quantities, while rules-based order approval added a layer of control and compliance. Vendor forecast collaboration was enhanced to improve supply chain visibility and responsiveness. Additionally, specialized planning logic was applied to slow mover parts and warranty parts, enabling more accurate forecasting and inventory management for these unique categories.

To improve user experience and streamline week/ day in the life planning processes, a series of usability-focused workflows were introduced. Structured Forecast review workflow, Enhanced item qualification for stocking, Safety Stock review & approvals, Tracking of forecast tuning reviews & accuracy segmentation, have all contributed to planner efficiencies, easy decision making and dynamic adjustments that cater to evolving business needs.

Driving success with a robust process framework, change management and collaboration
Several innovative solution designs were introduced. Heijunka logic to enable stable ordering patterns, safety stock fill rate simulation, smoothening of weekend ordering spikes, generation of statistical forecasts for parts during DC rollouts, min-max logic for slow moving parts, and modelling supersession logic at all planning levels to meet all the unique business needs of SET. Safety stock levels derived using empirical distribution served as a reference against statistical models, giving planners additional confidence about the right inventory levels to be maintained.

Working closely with Blue Yonder partner Accenture, SET implemented Blue Yonder’s demand and supply planning solution. The program kicked off with an envisioning & planning phase. During this phase, all the business & IT requirements were defined, a project road map was finalized and software features needed were mapped out. During the design phase, detailed solution designs addressing functionality, integrity, and performance were built. Accenture designed solutions leveraging Blue Yonder platform, partnering closely with SET to define prescriptive workflows, and the IT team to define the extraction and transformation logic for interfaces. High degree of automation and intuitive workflows enabled users to manage day-in-the life activities by exception, enabling significant productivity gains and manage the significant re-design of core operations, distribution network, and system landscape with ease. Rigorous testing across systems based on end-end business processes ensured data quality.

Beyond technology, the project’s success hinged on business adoption. Strong business adoption was achieved through business simulation, collaboration & continuous engagement. Over the course of the initiative, several system enhancements were delivered to improve functionality and user experience. These efforts were supported by comprehensive user training, ensuring smooth adoption across all stakeholders during transition from mainframe and operational churn when new DCs were being established. During new DC launches, Accenture ran Blue Yonder models to generate stocking plans 6 months ahead of go-live. Plans were refreshed monthly and shared with TMNA. This was a major success factor for the launch & roll out of new DCs.

Obtaining measurable business outcomes
Accenture’s implementation of Blue Yonder delivered significant results, aligning with SET’s vision to modernize its supply chain, expand reach, and launch planning and ERP solutions with minimal disruption.

The initiative delivered numerous measurable successes across parts planning, inventory management, and financial control. Planning capabilities were expanded to support approximately 68,000 parts across three major distribution centers, the two new DCs and the existing DC. Through targeted safety stock optimization, the team achieved a 10% reduction in excess inventory, contributing to leaner operations. At both new DCs, around 21 days of prebuild inventory volume were successfully managed over a three-month period, ensuring readiness ahead of full operational transitions. Additionally, working capital impacts were effectively contained, with inventory volume increases kept within expected limits despite the addition of new distribution centers.

Operational efficiency was significantly enhanced through several key initiatives. The new part introduction process was streamlined by refining part eligibility procedures, which reduced planner workload and enabled the successful introduction and purchase order creation for all active stocked parts (68K per DC). The forecast review process was also improved through the implementation of actionable workflows and performance metrics, leading to greater planner productivity. Additionally, the planning of Port Installed Options (PIO) parts was strengthened by integrating PIO forecasts and aligning them with specific business rules, which supported a smooth transition for the Jacksonville Distribution Center (DC).

To support business growth and ensure operational resiliency, hierarchical forecasting models were implemented during a three-and-a-half-month dealer rollout period. These models enabled accurate parts forecasting by accounting for dealer-level sales variations, ensuring that inventory levels aligned with actual demand. Throughout the rollout, end-state inventory thresholds were successfully maintained, providing stability during the transition. Additionally, a one-stop solution was developed to support the entire lifecycle of distribution center operations—from initial stocking to steady-state performance across multiple DCs—ensuring a smooth and scalable expansion process.

The initiative delivered strong financial results by significantly reducing excess inventory and optimizing distribution center transitions. A five-stage plan was implemented to reduce overall inventory, all while maintaining high fill rates. The optimized safety stock levels were then effectively translated to the new DC, ensuring continuity in service levels. During the shutdown of the old DC, inventory transfers were minimized by proactively reducing safety stock levels and providing forward visibility into excess inventory. This enabled the development of tailored strategies to manage forecasts and orders, further enhancing inventory efficiency and cost control.

Partner collaboration was strengthened through proactive planning and communication. Weekend spikes were smoothed out, re-distributing demand to regular weekdays to avoid daily limit constraints and ensuring a more balanced and predictable supply chain flow. TMNA was provided visibility through the building out of new DCs. All pre-defined business rules were adhered to throughout the transition period, and dealer fill rates were maintained.

Uno sguardo al futuro
With the successful transition to a modern forecasting system, SET is positioned for sustained competitive advantage. The company is exploring opportunities to deepen data insights, enhance dealer collaboration, and further automate planning. The partnership with Accenture and Blue Yonder has established a scalable, interoperable foundation for future enhancements, including advanced analytics and broader supply chain optimizations, ensuring SET remains a leader in the evolving automotive distribution landscape.