What they asked
Our client was a global tire manufacturer. The company was pursuing an ambitious European growth strategy that included the opening of a new greenfield manufacturing site in Hungary. The objective was to minimise distribution costs per tire while securing lead times and availability in all European markets. We were asked to support the design and possible outsourcing of their European distribution and warehousing activities.
What we did
We modelled multiple network scenarios, considering both quantitative and qualitative value drivers from sales, supply chain and manufacturing. We selected a scenario that included outsourcing part of warehousing and all distribution activities. We managed and executed the outsourcing process from baselining to negotiating and contracting. We detailed the physical and IT interfaces in the semi-automated finished goods warehouses in order to guarantee unobstructed outbound flows.
What we accomplished
These measures resulted in an optimal network design for distribution across 20 European countries. The outsourcing setup also locked in substantial savings on warehousing and distribution costs per tire, and secured a scalable solution in a multiproduct, multimarket setting.