Client
- Medium-sized client in the high-tech sector.
- Around 1.0b$ turnover
- Several plants and warehouses located globally.
Challenges
- Fast growth of the client combined with their product’s short life-cycle required an optimisation study to increase efficiency and to implement a dynamic and sustainable supply chain flow.
- Several local warehouses and vendor managed inventories were implemented under the emergency of a specific customer project.
- The overall warehousing organisation of the client’s business was not optimized.
- Logistics costs were too high compared to the product sales values.
- Fire-fighting mode vs planned approach led to a need for crisis management planning.
Tokema Approach
- Tokema was appointed by the client to perform a logistics optimisation study and make recommendations regarding the organisation’s warehousing strategy.
- Tokema proposed two different distribution scenarios based on network modelling and costs simulations.
- Taking into account lead-times, transportation costs, warehousing infrastructures and the main sourcing locations in Asia, these scenarios required the warehouse to be located near an international airport where customs brokerage could be facilitated.
- A detailed transition plan was also included in the network design study to move from the existing layout to the desired model.
- Tokema was appointed to manage the implementation of the project up to the start of the operations at the new pan-European distribution centre in the Netherlands.
Benefits
- Optimized network ensuring a dynamic, responsive and sustainable supply chain.
- All local European warehouses were closed down and consolidated in a pan-European bonded distribution centre located near the Schiphol Airport in the Netherlands.
- Optimised logistics costs.
- Implementation of a new WMS interface with the client’s ERP increased visibility and efficiency along the supply chain.
- Enhanced sales and operations planning and efficiency
- Improved capacity management.