Network Optimization


Global Building & Re-modeling Products
Issue: Supply Chain costs too high, customer service suffering.
Solution: Confirmed 3 DC network locations correct, considered inventory costs, optimized customer DC assignments and transportation efficiency for potential $9M savings.  Analysis suggested change in mfg and sourcing locations, plant consolidations in order to lower total landed costs for potential $50M of savings.
Results:  This was reviewed for practicality, implemented over 3 year period for $20M savings.

Global Machined Products Manufacturer

Issue: Footprint increased due to acquisitions with too many warehouses and increasing distribution costs.
Solution: Optimized the current manufacturing and distribution network which showed significant savings by relocating product lines and consolidating manufacturing and distribution footprint.  A two DC solution was selected from 30 potential North American DC sites for parts distribution and imported finished goods.
Results: 13.5% savings compared to prior fiscal year through restructuring network.

Plumbing Products Manufacturer
Issue: determine best number and locations for DCs
Solution: Determined right number of DCs, alignment of inventory to result in total landed cost for each flow; identified cost reduction and service improvement opportunities for each scenario.
Results: Modeled existing network of plants and DCs, customers & vendors, IB & OB flows, total landed costs including all modes of shipping plus inventory, to develop best scenarios for optimization with savings ranging from 7% to 15%.

National Publishing & Newspaper Company
Issue: Identify opportunities to drive competitive improvement in customer service & cost.
Solution: Multiple plant locations, 38 DC's, over 3,500 routes from these DC's.  Modeling covered costs in production including capacity analysis, scheduling, optimizing the number of facility locations and sizing, to consideration of customer delivery costs and service across multiple channels.
Results: Implemented cost reductions resulting from facility consolidations and production improvments that exceeded 15% and achieved major customer service improvements with minimal service disruption during implementation.

Quality Branded Commercial Storage & Trash Containers
Issue: US manufacturing to be relocated to Latin America, where should US DCs be located to best serve customers and control distribution costs.
Solution: Conducted network modeling to optimize US distribution locations that serve retail and wholesale channels. Model included customer locations and volumes, DC costs, IB and OB transportation costs including analysis of modes.
Results: This resulted in three new DC location sites being selected to meet total lowest landed cost requirement with further consideration for customer service with tradeoffs made for optimal solution.  

Major Global Producer of Paper & Pulp
Issue: Supply chain costs were rising and footprint needed to be analyzed for optimization.
Solution: Produced otimized network mdoe consisting of 8 major product families, 8 plants, 12 DCs, 1,000 demand sites; developed cost model considering attributes for fixed and variable manufacturing costs, IB and OB transport costs-all modes, DC capacity and DC costs.
Results: Modeled future location strategies for new DCs and manufacturing sites achieveing total owest landed costs for mangement to consider in developing their new strategic plan.

European Machined Products Manufacturer
Issue: Growth and then acquisitions resulted in too many plants, warehouses and increasing supply chain costs.
Solution: Optimized current manufacturing and distribution network across Europe with consideration of low cost countries in Eastern Europe and Asia.  Optimization showed significant savings by relocating product lines and consolidating manufacturing and distribution footprint.  There was further savings potential for certain products to be made in Eastern Europe and/or Asia based primarily on labor, sourcing and transportation costs.  
Results: Model optimized for lowest total landed costs resulting in European savings of 7% and with low cost country consideration savings increased to 16% (as compared to prior fiscal year).

West Coast DC Location Study for Building Products Manufacturer
Issue: What effect does planned acquisitions have on the existing network and the need for a West Coast DC?
Solution: Determine which plants should make certain products and which DCs should distribute them, the right locations, effect on inventory, and what the total landed cost for each flow is; identify cost reduction and service improvement opportunities.
Results: Modeled existing network of plants and DCs, customers & vendors, IB & OB flows, total landed costs including all modes of shipping plus inventory, to develop best scenarios for optimization which resulted in savings ranging from 7% to 15% depending on scenario.

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