Zeder Corporation

With a mission to deliver innovation and exceptional service, Zeder Corporation is Australia’s largest automotive steering and suspension business. The company has successfully overhauled its operations through a comprehensive supply chain transformation project, unlocking new growth opportunities.

Facing a rapidly evolving and highly competitive market, Zeder recognised the need to transform its supply chain to boost its growth. With the implementation of the transformation project, the company aimed to revolutionise its operations and deliver exceptional service to its customers.

Challenges

The aftermarket automotive parts sector is characterised by unpredictable demand, often driven by economic fluctuations. This volatility underscored Zeder’s need for a more agile and flexible supply chain. With lead times ranging from 8 to 12 months, the company sought to optimise stock levels by reducing obsolete inventory and minimising stock shortages.

As Zeder laid the groundwork for its global expansion, it saw an opportunity to align its operations better, thus enhancing reliability and improving customer satisfaction across the globe. Manish Narayanan, Director S&OP at Zeder, remarked: “Customers had become resigned to delays, but we saw an opportunity to break that cycle and redefine what’s possible in this industry.”

Solution

Determined to take its business to the next level, Zeder decided to partner with Slimstock’s experts to improve visibility, optimise supply planning, and streamline its operations. Following the implementation of Slim4, the company has experienced exceptional results:

• A 30% reduction in inventory through the implementation of a robust forecasting system.
• A freeing of 10 million AUD in working capital for reinvestment in further expansion.
• A reduction of lost sales from 25% to 4%, significantly improving service levels.

Scalable Solution

The relationship between Slimstock and Zeder has been growing over the years. Following a successful implementation of Fulcrum Suspensions, Zeder chose to extend the project after the merger. Manish Narayanan explains: “The software is incredibly user-friendly and excels in supply planning. Its strength lies in making the planning process both efficient and effective, allowing us to stay in control without overcomplicating forecasting—a perfect fit for this industry.”

With this project, Zeder has realised significant benefits, freeing 10 million AUD in stock while reducing lost sales from 25% to 4%. Manish Narayanan adds: “Freeing up cash flow from stock has allowed us to expand. For a business like ours, that’s an enormous advantage.”

A Cultural Shift Towards Agility

Zeder restructured its supply chain into a cohesive, responsive network, ensuring information flows seamlessly and teams can quickly adapt to market changes. Manish Narayanan explains: “When the economy takes a hit, discretionary products are often the first to feel the impact. To address this, we’ve restructured Zeder’s supply chain into a single, cohesive system that functions seamlessly from end to end, ensuring a highly responsive approach to market changes.”

Streamlined Communication

Slimstock’s supply planning solution has empowered teams to ensure that the right information flows to the right teams, resulting in a 30% reduction in stock levels. Manish Narayanan highlights: “It’s not about overwhelming the system with too much data; it’s about ensuring the right information flows where it’s needed. This means information should be digested correctly, processed efficiently, and shared up and down the supply chain in the shortest possible timeframe.”

He continues: “By enabling communication between areas, the entire supply chain can operate in unison. Whether we’re scaling up or down, we can respond quickly and effectively. This approach is crucial in managing the volatility of demand.”

Looking Ahead: Building on Success

While Zeder has already achieved impressive results, its journey with Slim4 remains ongoing. The company is now focused on further improvements, including:

• Shortening lead times for both raw materials and production processes.
• Optimising safety stock levels to free up additional working capital.
• Enhancing quality control to minimise incidents while maintaining cost efficiency.

Through its partnership with Slimstock, Zeder Corporation has transformed its supply chain into a strategic asset. As the company continues to innovate, Slim4 remains a key part of its strategy, ensuring that Zeder is well-equipped to meet the demands of an ever-changing market.

Manish Narayanan concludes: “Over the past three or four years, I’ve observed Slimstock from the perspective of both a consultant and a customer, and it’s been impressive. Slimstock’s focus on the right priorities, the continuous improvement of the software, and the overall culture make it one of the best supply planning companies. It’s not just about the software or the business; it’s about the people, too. I’m excited to continue improving our business alongside Slimstock’s team.”