Although continually showing year-over-year budget improvement in logistics costs, a leading provider of safety, quality, conservation, and flow-control products to water infrastructure markets in North America, Europe and China had not done a major network analysis in approximately eight years. New executive management decided that an optimization study, along with benchmarking research, would be both educational and potentially surface network cost reduction opportunities.
Services Provided
- Captured baseline of current combined transportation and DC operation spend
- Integrated multi-scenario network modeling using optimization software
- Benchmarked client’s logistics costs and practices versus industry peers
- Provided a comprehensive distribution center strategy and other network improvement opportunities
- Provided benchmarking insight regarding competitors’ business levels and practices
- Completed network scenarios analysis (“what if?”) utilizing LogicTools LogicNet Plus to perform the network analysis
Results
- $4.7MM in savings achieved through consolidation of six facilities into four and optimizing transportation
