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Develop distribution network strategy for key account of LSP

April 06, 2016 2770 Views

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Description
Nippon Express is a worldwide leader in logistics services. Its head office is based in Tokyo, Japan. The company was established in 1937 in line with the Nippon Tsu-un Kaisha Law as a semi-government transportation service. Nippon Express annual revenues exceed $14 billion USD. Nippon Express has a strong global network that spans over 80 countries, with company direct operations in 33 nations.

Opportunities
As part of a business proposition for one of its key accounts, Nippon Express wants to develop a distribution network strategy for an automotive manufacturer, specifically tires.

Solution

  • Groenewout determined the best possible distribution network footprint, i.e. what is the optimal number of local satellites to support the EDC in The Netherlands, and where should they be located. With the objective to,
  • minimize the logistics costs (warehousing-, transportation- and inventory costs),
  • optimize the service levels of 24-hours lead-time,
  • make best use of operational logistics conditions as quality, responsiveness and flexibility.

Benefits

  • A “helicopter view” assessment on the optimal distribution network structure.
  • Specific logistics benchmark figures from the tire industry.
  • 5 viable distribution network scenarios compared on logistics operational costs and customer service performance (lead-time).