KPMG helped a global industrial company's spare parts business to develop its distribution network

The project focused on the distribution network of the spare parts business of a global industrial goods and services company. The client's network, developed through mergers and acquisitions, required an assessment to determine whether it met their business requirements and to explore potential improvements in delivery times, reliability, and costs.

KPMG gathered a comprehensive understanding of the current state. Extensive data was collected from the network's operations, and front-line personnel were interviewed. Based on this data-heavy work, a comprehensive analysis of the current state was created, and the distribution network’s locations and their possible optimization were assessed. While no structural issues were found, the scope of the project was adapted flexibly to identify opportunities for smaller improvements.

The identified improvement levers were analyzed and evaluated. In-depth analyses were carried out to evaluate the impact of these actions on delivery times and costs, with considerations also given to tax and ESG matters.

Our team included expertise from various fields, such as analytics, taxation, customs, and ESG. Leveraging our extensive international network, we also had access to the in-depth knowledge of local KPMG experts in target markets. This collaborative approach ensured a comprehensive and well-rounded analysis for our client.

Data compilation and analysis provided facts about the current state of the network and deliveries, enabling necessary actions. Together with the client we concluded that no significant changes were needed for the network, but fine-tuning could be done to improve spare parts delivery times, reliability, and costs. The client received actionable improvement recommendations that it could further develop and implement independently. 

The client was highly satisfied with the project's result, as KPMG demonstrated comprehensive capabilities covering a wide range of aspects. The success of the project was made possible by smooth collaboration and KPMG's pragmatic approach with flexibilty to adjust to changes.