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European distribution network assessment

April 06, 2016 2649 Views

horizon-hobbyDescription
Horizon Hobby is an international developer, marketer and distributor of radio control (RC) hobby products, model trains and a wide range of educational, toy and other hobby products.

Horizon employs nearly 700 people and sells products in more than 50 countries around the world. Corporate headquarters, along with the main distribution facility and product service center, are located in Champaign, Illinois. European distribution centers are located in Harlow, England and Elmshorn, Germany.

Opportunities
Due to an on-going significant sales growth, Horizon Hobby had to develop a (re-)newed European logistics strategy:

  • optimal number and locations of their European warehouses
  • opening new sales offices in Europe
  • new sourcing strategy for finished goods & spare parts with Asian and North-American manufacturers.

Solution
Groenewout conducted a fast track assessment of the European distribution footprint to evaluate how to facilitate the future sales volumes and distributor strategy.

Benefits

  • Validated distribution strategy on the number and locations of the European warehouses from current date to 2015
  • Calculated estimations on operational logistics costs, through distribution network modeling
  • Financial validation for new distributor strategy on logistics costs.