Client Case Study – Global Distribution Network Validation
Distribution management of a US company that manufactures and distributes industrial and consumer safety equipment was charged with the responsibility of developing a new plan for the company’s logistics network—one that will maximize service to customers while achieving operational efficiency.
In Europe, the company’s products are manufactured in Berlin, Germany; Châtillon sur Chalaronne, France; and Värnamo, Sweden. In addition, its products are sourced for the European market from other plants around the world and from external suppliers. Distribution centers at the different affiliates also served customers in their own countries and beyond.
The purpose of the Establish project was to assess and verify that the company’s logistics team’s recommendation as described in their “Recommendation on the European Logistics Project”, was optimal, identify weaknesses in their approach, and propose needed improvements.
Establish obtained relevant information concerning the recommended site selection for the new distribution network and relevant information in the areas of requirements, imports/ exports, labor, etc. The company’s information gathered to date and the site selection chosen by the company was then validated.
Evaluation was done according to Establish Distribution Strategy methodology, focusing on the demand analysis (volumes) and evaluation of the solution; i.e. Establish analyzed the project work already done and suggested a strategy as if it was done as a traditional project where Establish had been involved from the very beginning.
The strategy was assessed and additional analyses were compiled. Improvements were suggested and alterations in the strategy were presented. Since completion of this work, Establish has been involved in further detailing of the solution and implementation of the strategy on several markets.
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