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Analyze and propose best suitable distribution structure

November 06, 2018 1656 Views

Description

Apollo Vredestein is a Netherlands-based tire manufacturer and it is part of Apollo Tyres Ltd of India. Apollo Vredestein has its head office in Amsterdam, the Netherlands and its production facility in Enschede. It designs, manufactures and sells tyres under the Apollo and Vredestein brand names via offices in Europe and North America.

Vredestein products include car tyres, tyres for agricultural and industrial applications, and bicycle tyres.

Opportunities

Currently, tires are manufactured in Enschede and Hungary. Enschede is the central distribution center from which tires are distributed, mainly across Europe via a network of regional and local distribution centers. Since Enschede has fully utilized its capacity, Groenewout was asked to analyze and propose the best suitable distribution structure to facilitate this production set-up.

Solution

By using the Supply Chain modeling software Cast Aurora, different transport and warehousing scenarios have been simulated. Not only the logistics footprint was assessed but also the differentiation between direct factory, X-dock consolidation and local DC shipments.

Benefits

With the simulation of several supply chain scenarios a transparent insight is realized with the following benefits:

  • Minimization in supply chain costs (transport, warehousing, inventory)
  • Increased supply-demand balance, which can improve the supply chain lead-times
  • Strategic plan of TO-BE logistics footprint