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Many businesses have become locked into distribution networks that were designed for an earlier era, before highways, reliable transport, computers, the internet and mobile technology.
Restructuring of networks may seem a daunting prospect. LCA’s experience is, if the modelling is detailed planning is through, the results can be transformational, adding huge value at minimal risk.
The biggest risk is not taking any risk. In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”Mark Zuckerberg
A leading FMCG manufacturer in Indonesia.
The client operated an in-house depot network across Java. This network became a constraint on growth through the combination of physical constraints and the complexity of planning, making it difficult to maintain a high level of product availability across the island.
remodeled the Java network, a detailed solution pulling back inventory into regional hubs which allowed the depots to be replaced by local sales office, and x-dock locations, not necessarily co-located.
The modelled results, replicated in the roll-out were:
- 45% reduction in network inventory
- 15% increase in product availability
- 10% reduction in operating cost