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Define optimizal distribution structure

April 06, 2016 3046 Views

canonDescription
Supply chain project for an industry leader in imaging products and solutions for the digital home and digital office environments. Supply chain characteristics: short product life cycle, high value products, mainly non-European suppliers, trend towards European generic products, pan-European distribution.

Opportunities
European logistics department was committed to improve their supply chain in terms of performance and costs for the distribution of all products from leaving the (non)-European supplier up to the customer delivery.

Solution
Different alternative logistics networks were analyzed. An European logistics model connected to 6 regional satellites was determined as the optimal solution. Maximization of central stock function, direct drop-shipments and central value added services in 1 European facility, supported by 6 satellites for minimal stock holding, consolidation of reverse logistics and execution of preinstallation activities.

Benefits
Canon gained substantial annual operational cost reduction in the total supply chain costs and an increased flexibility on business changes. Besides, accomplished was one integrated logistics concept and organization as a shared service. Groenewout served as a one stop shop in supporting Client through the 3 years implementation phase.