Case Study

Transforming Growth at an Auto Parts Distributor

IGS worked with a national auto parts distributor to assess the changing distribution landscape and identify a new strategic pathway for growth.

Key Insights

• IGS's client was a national auto parts distributor facing pressure from competitive threats and a declining core customer segment that represented nearly 40% of sales
• IGS conducted market landscape assessment and primary research with customers and competitors, plus analyzed historical transaction and inventory data to identify gaps and opportunities
• IGS guided leadership through working sessions to develop a strategic growth plan focused on engines and performance parts, a sub-market where no competitor had established leadership
• IGS rapidly built an actionable plan that repositioned the client's sales, operations, and inventory approach around this strategic focus

IGS identified over $6M of inefficient inventory costing the company over $600K in annual holding costs, which were immediately addressed along with operational changes to improve focus on engines and performance.

IGS designed a more dedicated sales organization and began shifting focus from the declining channel partner to put more direct customer access in the hands of the organization.