A New Operating Model
for a Leading Automotive Aftermarket Retailer
How a leading auto parts retailer built the right supply chain roadmap
before spending millions on technology upgrades
INDUSTRY
Retail, Transportation & MobilityOFFERING
Strategic Supply Chain Assessment, Technology Strategy & Vendor SelectionTECHNOLOGY
Supply Chain Planning, WMS, TMS, LMSMaintaining your competitive advantage, strategically
For this leading automotive aftermarket retailer, supply chain performance wasn't measured by cost savings alone—it was measured by whether a customer could get the right part in 4 hours or less.
Independent repair shops with vehicles already on the lift don't wait. If the part isn't available, they call the competitor across the street. In this business, fill rate is brand loyalty. And inventory availability is a strategic weapon—not a four-letter word.
That inventory availability promise had fueled the business’ growth since 1957—from a single store in Missouri, to more than 6,200 locations across 48 U.S. states, Puerto Rico, Mexico and Canada.
Their operating model serves three distinct customer segments: Do-It-Yourself (DIY) retail consumers, professional installers operating repair shops and fleet operations, and jobbers—i.e., smaller automotive retailers who rely on the company as their primary wholesale supplier. Each segment has different service expectations, pricing structures and fulfillment requirements—and every one of them depends on the same inventory promise.
Unfortunately, behind the scenes, the operating model supporting all of it was being held together by nearly 30-year-old planning and replenishment systems—proprietary tools, extensive customizations and layers of home-built code that blurred the line between process and technology.
While the systems still worked, they were supported by an endless spider web of undocumented enhancements and custom logic which amounted to decades of technical debt. The business could operate—but it wasn’t optimized.
Planning and replenishment were built on outdated assumptions, rigid rules and brute-force logic designed for a different era of retail. The systems prioritized in-stock inventory above almost everything else, but they lacked the flexibility to be pragmatic as customer behavior, product mix, and market conditions changed.
For instance, take slow-moving parts for older vehicles. A single sale could trigger an immediate replenishment order, regardless of the actual probability of another sale in that market. The system was designed to replace what sold—not necessarily to ask whether it should be replaced at all.
The company’s biggest opportunity wasn’t to reduce inventory for the sake of efficiency. It was to become smarter about where inventory created loyalty—and where it was simply creating cost.
But this wasn't a problem that could be solved with a simple vendor selection RFP. The product demand dimension complexity alone—hundreds of thousands of SKUs, segmented across vehicle applications, part categories, brand tiers and regional demand profiles—meant that any modernization decision made without first understanding the operating model would carry enormous risk. And there was no formalized Integrated Business Planning (IBP) process connecting demand, supply, merchandising and financial planning into a single decision framework. Planning happened in silos. Decisions happened in silos. And the technology was reinforcing all of it.
That required a new operating model, not just newer software. Enter Spinnaker SCA.
The problem wasn't just old software. It was old assumptions under the hood.
Our supply chain strategists conducted a 10-week Strategic Supply Chain Assessment powered by Spinnaker SCA's proprietary Target Operating Model, IBP Process Framework and Supply Chain Maturity Model—industry-specific accelerators built from decades of retail, aftermarket and distribution experience. (Note: These aren't generic frameworks borrowed from a textbook. We understand that a retailer whose brand is built on 4-hour availability operates under fundamentally different rules than one optimizing for margin or throughput.)
Using our Five Lenses Framework, we separated what was truly strategic from what had quietly become expensive tech debt and operational band-aids across merchandising, supplier collaboration and supply chain management systems.
The goal was simple: Define the future-state target operating model first, size the gaps, challenge what no longer made sense and then make technology decisions that actually supported the business—not the other way around.
- 01 Brand identity matters
- 02 Legacy logic challenged
- 03 Untangling technology
- 04 Process redesign
- 05 Modernization roadmap
We had to preserve product availability without protecting bad habits
Inventory reduction was never the goal. The retailer's goal was to stay in stock, protecting same-day availability and making sure they remained the first call for both DIY customers and professional repair shops.
We reviewed service-level policies, product dimension hierarchies, stocking rules, store segmentation strategies, and replenishment parameters to make sure modernization didn't accidentally destroy the thing that made them successful. Because "best practice" is useless if it sends your customer somewhere else.
With our Supply Chain Maturity Model, we benchmarked current capabilities—giving leadership a clear, visual picture of where they led, where they lagged and where investment would create the most value.
Just because it works doesn't mean it should
We reviewed end-to-end planning processes, including procurement, forecasting, replenishment, inventory positioning, postponement and distribution flows. And we challenged long-standing assumptions like vehicle registration-based planning models, front-of-store versus back-of-store inventory logic, how new SKUs were forecasted versus established items, and how demand signals drove stocking decisions and more.
With our IBP Process Framework, we defined what a connected, cross-functional planning cadence should look like—one that links demand signals, merchandise planning, supply execution, and financial alignment into a single rhythm.
The goal was to replace fragmented, siloed planning with a structured IBP process that gave leadership one version of the truth and one forum for making trade-off decisions across the entire value chain.
Figure out where business logic ends and technical debt begins
Decades of enhancements had created a patchwork of planning systems, custom integrations and platform dependencies—spanning wholesale, replenishment, assortment optimization, channel clustering, pipeline, corporate order generation and supplier portals—across forecasting, replenishment, WMS, TMS and labor management.
Some of that complexity was necessary. A lot of it wasn't.
Our supply chain system integration experts mapped the full landscape—including the custom code bridging legacy systems—to determine what belonged in core platforms and what had become technical debt dressed up as process.
That work became the foundation for smarter decisions across SCP, WMS, LMS and TMS platforms and would feed directly into future technology selection choices.
Stop organizing ownership around system limitations
Roles and responsibilities had evolved around what the systems could support—not around what the business actually needed.
We evaluated planning ownership, RACIs, organizational structure and decision rights across merchandising, planning, supply chain and distribution.
Beyond structural redesign, we defined IBP process ownership, cadence, and governance—so that planning, merchandising, supply chain, and finance would operate as one connected decision-making body. The revised Target Operating Model didn't just describe who does what. It described how the organization plans, decides and executes as an integrated system—with IBP as the connective tissue.
The question wasn't who does the work today. It was who should own it tomorrow.
Sequence the transformation, lower risk
The final deliverable was a practical roadmap outlining capability gaps, organizational implications, enabling technologies and modernization priorities across planning, merchandising and distribution.
From the revised Target Operating Model, we derived prioritized product selection requirements across every planning function.
Those requirements became the foundation for a vendor shortlist aligned to the future-state operating model, ensuring that technology evaluation criteria reflected real business priorities and competitive differentiators—not inherited workarounds or demo-driven enthusiasm. This was something leadership could actually use. And it became the blueprint for what came next.
Gaining clarity before commitment
Spinnaker SCA helped this retailer move from: "What system should we buy?" to "What operating model are we actually building for?"
Instead of making another expensive platform decision based on inherited workarounds, leadership gained a rationalized Target Operating Model, a structured IBP framework, a vendor-neutral supply chain technology roadmap, prioritized technology requirements and a clear path forward—without compromising the service model that made the business dominant.
This wasn't about reducing inventory for the sake of efficiency. It was about better-positioned inventory, clearer ownership, stronger decisions and a supply chain built to grow without sacrificing availability.
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Industry-specific benchmarks deployed across target operating models, IBP, and supply chain maturity
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Future-state target operating model defined across planning, merchandising, replenishment, inventory and distribution
- Integrated Business Planning process refined replacing siloed decision-making with cross-functional alignment and a single forum for business trade-off decisions
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Prioritized business requirements and technology needs based on the revised Target Operating Model
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De-risked technology investment with realistic vendor shortlist based on future-state requirements of all 13 supply chain systems
- Future-ready roadmap to support growth at scale after nearly seven decades of expansion proved the business philosophy works and now with an operating model that can keep up
Modernization isn't limited to technology.
If your supply chain is running on systems that nobody wants to use, your first step should be strategic clarity, not system replacement.

