Mahle Aftermarket Inc. was presented with a Polk Inventory Efficiency Award from IHS Automotive at the Global Automotive Aftermarket Symposium (GAAS), held in suburban Chicago.
Ted Hughes, marketing manager and Chris Booth, supply chain coordinator for North America were on hand to accept the prestigious award.
The award, now in its 10th year, recognizes members of the automotive aftermarket for their efforts toward inventory efficiency and process improvement within their organizations.
Mahle Aftermarket Inc. was recognized for the implementation of a systematic approach to managing its product portfolio, using vehicles in operation (VIO) data to prioritize trends and new coverage areas, while customizing inventory based on parts demand and consumption.
The approach also incorporated a new warehouse management system at its master distribution facility in Olive Branch, Mississippi. The new system includes voice recognition picking for parts and provides part number and barcode verification, ultimately reducing excessive paperwork, increasing order fill rates and decreasing turnaround time. The implementation of the solution virtually eliminated errors, achieving 30 percent improvement in picking efficiency since its implementation in 2013.
Additionally, the inclusion of a supplier portal and scorecard for Mahle suppliers allowed for more timely communication and data delivery, providing the means for Mahle to award supplier achievements. In total, these improvements allowed for aggressive inventory reduction – nearly 25 percent since 2010.
“For any company in the aftermarket, managing inventory and supply chain are especially vital investments to synchronize product supply and demand for efficient product flow,” said Jon Douglas, general manager, Mahle Aftermarket North America. “It is a great honor to be recognized for this achievement today; and for our team’s diligence over the years in implementing these programs.”
“It’s a pleasure to recognize the efforts of the team from Mahle with this year’s award,” said Mark Seng, global aftermarket practice leader, IHS Automotive. “Commitment to and success in managing a multi-faceted approach to achieving efficiency is one of the cornerstones of these awards.”
Since the introduction of the award in 2005, nominees have shown the ability to design and efficiently implement increasingly innovative solutions to the inventory management challenges facing the industry. The impressive list of winners, including both big and small companies, is a testament to the aftermarket’s ability to adapt and innovate in the face of adversity.