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'Fit to win' supply chain solution delivering higher agility and service with lower end to end total cost

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