SUPPLY CHAIN

CASE STUDY: supply chain Design

Industry:
Global Bicycle Manufacturer
Company Size:
500+
Project Location:
United States / Europe
Problem Statement:
Our customer, a very successful and fast growing bicycle manufacturer from the US West Coast had decided to enter the European market. While only some accessories were produced in the US, the actual bicycles were manufactured in China. If our customer was able to quickly set up an efficient supply chain from the Chinese manufacturers to the end customers in 23 European countries, a >20% growth in sales could be achieved within the first fiscal year of operating in Europe.
STREAMLINERS’ Approach and Solution
Meeting:
Learn specifics of the sold products as well as how the current supply chain from China to North America works
Deep Dive:
Gain detailed knowledge of sales channels and projected sales by country; understand end-customers' needs and requirements, especially in regards to expected order-to-ship cycle time
Hypothesis:
Implementing a distribution warehouse in close proximity to the top 80% customer markets will provide shortest delivery times at lowest freight and distribution costs
Project:
1 consultant
12 weeks
Deliverables:
Comprehensive location analysis for European DC performed
3 potential DC's assessed and evaluated
Supply, fulfillment and distribution processes designed and implemented
Distribution network set up, house tariff with transit times and rates contracted
Turnkey implementation, training and handover
Bottom Line Impact:
Supply chain costs ~15% below budget
Sales increased by >20% ​

Location Analysis

 

Fees vs. Bottom Line Impact