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France & UK distribution network study

April 06, 2016 2390 Views

leapfrog-toysDescription
LeapFrog is a leading designer, developer and marketer of innovative, technology-based learning products and related proprietary content, dedicated to making learning effective and engaging for all ages, at home and in schools, around the world.

Opportunities
The main markets UK and France are supplied through two separate country warehouses. LeapFrog asked Groenewout to explore the best supply chain network for the future, i.e. one central warehouse or two separate warehouses including its location(s).

Solution
By running simulation scenarios with future business volumes it turned out that:

  • the current warehouses are located in the cost center of gravity
  • given the transport – and products characteristics and the mostly single lingual product portfolio, a centralized warehouse would not be more cost efficient than the current set-up
  • the current contracts for warehousing lack transparency and are expensive.

Benefits
With extensive insight into its own supply chain characteristics, LeapFrog now has the reference to build on the future supply chain strategy. Next to a detailed cost comparison in several cost categories, a qualitative impacts matrix is made focusing on Capex impacts, customer service, organization, etcetera. In this way, the provided insights can be used as a solid starting point for the planned tendering of the warehouse and transport services in both UK and France.