Optimal network structure

April 6, 2016 566

Stemcor logoDescription

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.

Opportunities

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.
Solution

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

Benefits

  • 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).

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