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Avaya
Consolidation of individual supply chains after merger
Description
Avaya is a global leader in communication systems, applications and services. Avaya has taken over Tenovis, a European competitor (€ 1.000 mio turnover). Groenewout supported Avaya and Tenovis with the merge of the European supply chains. Business characteristics: - Customer configured versus standard solutions - Direct channel versus indirect channel - Rental base model versus sales model Supply chain characteristics: - Centrally controlled versus de-centrally controlled - Applicable types of logistics: trade/service/reverse - 4-Layer structure: central European DC, local country DCs, emergency stock points, car stock
Opportunities
Identify the optimal integrated footprint of the existing distribution model for the two companies.
Solution
Design and analyze alternative scenarios on quantitative (supply chain costs, investments) and qualitative level (risk assessment) Identify the optimal supply chain with a maximum of synergies. The proposed solution has been adopted and implementation projects have been defined.
Benefits
Substantial reduction of total supply chain costs Improved transparency and controllability over the supply chain due to integrating down stream stock points and combining local and emergency stock points. Facilitation of further integration benefits:
- improved service (shorter lead-times, fully controlled supply chain)
- cost reductions due to merging assortment and economies of scales (tender for transport and warehousing with increased volumes).
Supply Chains Management
Consumer products
Pan-European |