Case Study

Supply Chain Design

Tokema completed an optimisation study to increase efficiency and implement a dynamic and sustainable supply chain flow for a mid-sized technology client.

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.

Discuss your next project

If you are interested in learning more about how Tokema can support your business, contact us.