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Define sourcing, manufacturing & distribution strategy

April 06, 2016 2515 Views

Description
Supply chain project for JohnsonDiversey, an industry leader in cleaning and hygiene solutions to the institutional and industrial marketplace. JohnsonDiversey serves customers in the lodging, food services, retail, health care, food and beverage sectors as well as building service contractors worldwide.

Opportunities
Recently, JohnsonDiversey commissioned a business study, resulting in an updated business strategy. In the area of supply chain management JohnsonDiversey defined three main improvement opportunities. JohnsonDiversey management was committed to improve their supply chain in terms of operational costs and optimize their product delivery by detailing and implementing the defined supply chain opportunities.

Solution
Groenewout analyzed different alternative logistics networks for different supply chains. A sub-regional logistics model was determined to be the optimal solution for chemical products and utensils. For machines and accessories products a centralized solution with maximization of central stock function and direct shipments was determined to be the optimal solution.

Benefits
JohnsonDiversey gained a substantial annual operational cost reduction in the total supply chain costs and a significant decrease of European inventory. Besides, there was an increased flexibility and one integrated logistics concept and organization as a shared service.