SITUATION & CHALLENGE
The client is a Global Distributor of electronic equipment and electrical components with a high service level, multi-channel customer offer.
- Highly competitive sector and demand moving to new markets putting pressure on legacy network capacity
- Large and expanding multi-location SKU range with high infrastructure costs
- Limited customer segmentation
RESULTS
- Defined product and customer segmentation criteria based on key cost drivers and service needs
- Jointly developed operational and business scenarios
- Network and inventory modelling undertaken reducing the number of warehouses from 9 to 4 and increasing capacity by 30%
- Flow, inventory and lead-time improvements reduce future operating costs worth 2% points of revenue
- Double digit reduction in future CAPEX requirements to accommodate growth
- Standardised “ways of working” aligned to best in class principles
- Time phased migration plan and “quick win” initiatives to boost near-term results
