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European logistics concept

February 19, 2021 895 Views

 

Description
Gates is a manufacturer of power transmission belts and fluid power products, which are used in diverse industrial and automotive applications. The company employs over 14,000 people and has sales and manufacturing operations in North and South America, Europe, Asia, Australia, and the Middle East.

Opportunities
Gates was aiming at an integrated European logistics concept, optimizing the different warehouse locations in Europe.

Solution
Based on multiple scenario calculations, the strategic direction of Gates’ distribution footprint was established balancing the optimal customer service (lead-time) against a minimum logistics spend.

This included,

  • A financial business case containing the operational costs (transport, warehousing, inventory), (des-) investments and transition costs;
  • Overall blueprint of the warehouse characteristics (size, FTE’s, level of mechanization);
  • Sanity check on tax implications;
  • Stocking strategy per warehouse location within each of the scenarios.

Benefits

  • Design of the warehouse solutions on footprint, logistics processes, logistics mechanization, material handling equipment, number of FTEs and estimated investments;
  • An overall financial business case to support the decision on the future distribution concept;
  • Implementation schedule for the favored distribution network scenario from AS-IS towards TO-BE.