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 and planning is thorough, the results can be transformational, adding huge value at minimal risk.
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 were 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