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Identify optimal integrated footprint

April 17, 2019 1594 Views

Description
Avaya is a U.S. based global leader in communication systems, applications and services. Avaya (€ 500 mio turnover in Europe) has taken over Tenovis, a European competitor representing an annual € 1.000 mio turnover. Groenewout supported Avaya and Tenovis with the merge of the European supply chains.

Opportunities
Avaya Tenovis wanted to identify the optimal integrated footprint of the existing distribution model for the two companies.

Solution
Groenewout designed and analyzed alternative scenarios on quantitative (supply chain costs, investments, one-time costs) and qualitative level (risk assessment)
The optimal supply chain was designed, creating a maximum of synergies. The proposed solution has been adopted and implementation projects have been defined.

Benefits

  • Substantial reduction of total supply chain costs;
  • Improved transparency and controllability over the supply chain due to integrating down stream stock points and combining local stock points and emergency stock points;
  • Facilitation of further integration benefits;
  • Improved service (shorter lead-times, fully centrally controlled supply chain);
  • Cost reductions due to merging assortment and due to economies of scales (tender for transport and warehousing with increased volumes).