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Over 5% Supply Chain costs reduction through quick-wins

April 06, 2016 2811 Views

forbo-flooring

Description
Forbo Flooring is a leading manufacturer and worldwide distributor of linoleum and vinyl floor coverings (rolls, tiles and welding rods).

Opportunities
Forbo integrated it’s linoleum and vinyl activities into one Strategic Business Unit, Flooring. Forbo committed itself to realize significant cost savings in the global supply chain of this new Flooring Division.

Solution
Groenewout identified quick-wins within the existing Supply Chain concept:

  • Consolidation of shipments
  • Relocation of inventory
  • Coordination of inter-company shuttle transport.
  • Subsequently Groenewout analyzed Forbo’s supply chain business processes and identified opportunities for structural improvements and cost savings in Sales Forecasting, Production Planning and Inventory Management.

Benefits

  • 5+% Reduction of supply chain costs to be achieved within 1 year without significant investments
  • Outlined future improvements and cost savings in supply chain business processes
  • Identified savings potential of consolidation of customer shipments in fine distribution
  • Improved control of global supply chain network