ALLIANCE AUTOMOTIVE GROUP CASE STUDY
KEY PROJECT METRICS:
75%
INCREASED OVERALL EFFICIENCY
99%
INCREASED ORDER EFFICIENCY
50%
REDUCED OPERATIONAL COST
KEY CLIENT INFORMATION:
INDUSTRY
AUTOMOTIVE
EMPLOYEES
12,000+
LOCATIONS
GLOBAL
EXECUTIVE SUMMARY
Alliance Automotive Group (AAG), one of Europe’s largest distributors of automotive parts, embarked on a transformative project to consolidate its seven manual warehouses into a single, state-of-the-art 850,000 sq.ft National Distribution Centre (NDC).
Facing challenges in labour-intensive operations, inefficiencies, and the need to scale its e-commerce business, AAG sought a best-in-class automation solution.
Implementing a highly integrated automated warehouse solution featuring Exotec’s Skypod robots, wire-guided VNAs, and a new Warehouse Management System (WMS) increased efficiency by 75%, improved order accuracy to 99.9%, and reduced operational costs by 50%.
Despite delays in the construction phase and the main building contractor ceasing to trade before the building was complete, careful coordination ensured that the project was delivered on time and within budget.
Today, AAG operates one of the most advanced automated distribution centres in the industry, future-proofing its operations for European expansion.
INTRODUCTION
Company Overview
AAG is a leading distributor of passenger and commercial vehicle parts to the independent automotive aftermarket in Europe. It is a wholly owned subsidiary of Genuine Parts Company (GPC), the world’s largest automotive parts distributor.
Project Goals:
Consolidate 7 separate manual warehouses into a single, highly automated NDC.
Implement best-in-class automation to increase efficiency and accuracy while reducing costs
Reduce reliance on manual processes.
Reduce errors and improve quality.
Develop a scalable solution to support AAG’s growing e-commerce business.
Ensure a smooth transition of stock to prevent disruption to operations.
Key Stakeholders:
PROBLEM STATEMENT
AAG’s previous seven manual warehouses were:
To remain competitive, AAG needed a single, highly automated NDC that could streamline operations and significantly enhance productivity.
SOLUTION DESIGN
Three-tier manual pick mezzanine with 150,000 sq. ft. of configurable pick locations.
Manhattan WMS & Deepsky WCS for real-time automation control.
Integrated sprinkler system co-ordinated with automation & M&E build.
Phase-based transition to ensure zero operational downtime.
IMPLEMENTATION PROCESS
CHALLENGES & SOLUTIONS
Tight project timelines due to fixed warehouse closure dates
We used a phased transition approach with early WMS testing & stock migration
Complex automation integration
Milestone Projects’ subject matter experts ensured seamless WMS, WCS, and automation interfacing
Construction delays impacting project schedule
We prioritised critical project phases to keep the timeline on track
Ensuring automation scalability for future growth
Modular automation approach allowed easy future expansion
KEY LEARNINGS & RECOMMENDATIONS
CONCLUSION
Alliance Automotive Group’s 850,000 sq. ft. NDC is a game-changer for the automotive aftermarket industry. The project successfully streamlined operations, cut costs, and improved service levels, positioning AAG for long-term growth in the European market.
By leveraging advanced automation, real-time data-driven decision-making, and industry-leading expertise, AAG future-proofed its distribution strategy and created a benchmark for efficiency and scalability in the sector.
The result? A fully optimised, cost-effective, and high-performing distribution hub, ensuring AAG remains the leader in automotive aftermarket logistics.
If you’re looking for an automation solution for your warehouse, or you’re just looking for ways to improve efficiency in your material handling operations, you can see more of our case studies here, or you can get in touch with us with any questions about this project or our services.