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Optimal network structure
Stemcor is the world’s largest independent steel trader. With turnover exceeding £6 billion in 2011, Stemcor employs 2,000 people in a network of 145 business units in 45 countries across the globe.
Over the years Stemcor acquired several companies in Germany and the Benelux. In order to increase profitability, Stemcor has the objective to align/merge the different companies and move toward the retail side of the supply chain.
In order to select the optimal network structure, Groenewout:
Analyzed current volumes and provided insights in today’s Supply Chain operations & inventories
Allocated cost to operations and value to inventory
Designed optimal network structures for each of the product groups and recommended a more centralized integrated footprint
Composed a concise transition plan to implement the new network/footprint
Assisted in creating basis for improved internal collaboration instead of product groups silos
Define an agile supply chain footprint that supports the strategic agenda
“10 steps” to implement turned out to be powerful guideline to achieve costs-benefits within 1 year
Cost saving of >5%
Increased collaboration within Stemcor
Click here for the interview “Consolidation within Stemcor leads to lean and flexible supply chain” with Robert van der Weck, group stockholding director at Stemcor in Düsseldorf (Germany) and Marcel te Lindert (journalist).