clearpepper - distribution network design and logistics management case study

The Company A major supplier and manufacturer of “own label” household cleaning and personal care products. Had originated on the French / Belgian border and grown across Europe through acquisition.	The Project To rationalise the European distribution network for the bleach division. To define the new distribution strategy and identify where products should be manufactured and from where they should be delivered.
The Approach Using a sophisticated network modelling tool, the distribution network was modelled for the "base case". In the base case manufacturing, transport, warehousing, and distribution costs were included. Various alternative scenarios were then created and modelled in the tool, with the preferred option being selected.
The Results Base Case	Optimised Solution

In the optimised case, three major changes are identified on the above map: 1. The Italian manufacturing plant was closed due to low volumes and only a DC remained in Italy. 2. Due to cheaper manufacturing and transport costs, the Spanish plant distributed to southern France 3. This French DC and manufacturing site was closed Total cost savings in the optimised scenario were in the region of 25%.

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The Company