|
Industry: |
US Specialty Chemicals Manufacturer
|
||
|
Company Size: |
7,000+ |
||
|
Project Location: |
Europe
|
||
|
Problem Statement: |
For decades, our customer used to supply their European customers in 15+ countries through direct deliveries from the US. The minimum order quantity was 10 US standard pallets (equivalent to one 20' container) and transit times would take up to 6 weeks, depending on the destination in Europe. Due to increasing competition on the specialty chemicals market, our customer was forced to set up a smarter, less expensive and faster way to supply their European customers with smaller minimum order quantities. If they would not improve their supply chain to their overseas customers, European sales volumes would be at tremendous risk in the near future.
|
||
|
Meeting: |
Overview of European key markets
|
||
|
Deep Dive: |
Analyze material flows, order quantities and transit times per destination country; perform a best-fit location analysis for a future distribution center
|
||
|
Hypothesis: |
Establishing a local distribution center in Europe will reduce landed costs to customers, reduce transit times and significantly increase customer service |
||
|
Project: |
1 consultant 8 weeks |
||
|
Deliverables: |
Best-fit location for European distribution center identified
House tariff with steamship lines from US to DC (middle-men cut out) Transit times to customers reduced by 60% Landed costs to customers reduced by 15% |
||
|
Bottom Line Impact: |
Annual savings >$0.4 M |
||
Landed Costs Reduction
Fees vs. Bottom Line Impact
