Feasibility Study new warehouse EMEA

April 6, 2016 786

9024D255 forever direct.jpgDescription
Forever Direct is the European Distribution Center for AVA (Aloe Vera of America). AVA exclusively manufactures products for Forever Living in Texas (USA). Forever Living Products (FLP) is US-company founded in ’78. Its corporate HQ is based in Arizona (USA). FLP is today the world’s largest grower, manufacturer and distributor of aloe vera, bee and nutritional products. FLP is a multi-billion dollar company with 8.5 million distributors worldwide over 125 countries.

Opportunities
FLP operates from an external DC in the Netherlands to serve the EMEA-countries. This DC has initially a bulk replenishment-function to the local, national sales warehouses in the EMEA-region (43 countries in total)

In the new situation, a new EDC must be created for pick, pack, ship activities of the direct order-fulfillment shipments for a major part of the EU-countries and the bulk replenishments for the remaining EMEA-countries. Besides, new VAL-activities must be incorporated in the total solution.

Solution
The As-Is business volumes (flows and inventories) were calculated in order to determine the To-Be volumes. Topics as actual vs. future order profile, growth expectations, insourcing of new EU-countries and new processes and related volumes, seasonality patterns, organization, etc. were taken into account. All these calculations & assumptions were documented in a Logistics Strategic Document (LSD).
In the next phase, “The conceptual design phase”, 4 logistics scenario’s were defined based on the assumptions in the LSD document.
Finally, the preferred solution was detailed-out: Layout, Capex & Opex, organization, implementation planning and ROI for both options: rent/lease vs. buying.

Benefits

  • A detailed business transparency approach of the future situation based on data sets, questionnaires/interviews and validated assumptions.
  • Preliminary business case on which EU-countries are to be sourced on order fulfillment from the new EMEA-EDC.
  • Estimation of the savings (annually & one-off).
  • Optimal logistics concept of new EDC with layout design and sizing.

Click here for the interview Forever Direct decides to insource European distribution with Mr. Martin Zegers, Managing Director Forever Direct by Marcel te Lindert (journalist).

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