Savings by integration of European distribution structure

April 6, 2016 907

ideal-standard-logoDescription
Ideal Standard is the world’s largest manufacturer of bath & kitchen products. The range of products include: faucets, fixtures, whirlpools, accessories, showers and sinks. Brands include American Standard JADO, Borma, Armitage Shanks, Ceramica Dolomite, Porcher and Ideal Standard.

Opportunities
As a result of several mergers and acquisitions, the “AS-IS” network in Europe contained around 25 distribution centers. Ideal Standard desired to the optimize its existing European supply chain for fixtures and fittings. The preferred distribution structure should be streamlined:

  • Minimize the total distribution costs
  • Maximize customer service.

Solution
A detailed analysis of existing distribution network and customer service metrics characteristics was conducted. This provided a critical overview of the current supply chain. Supply chain simulation models were used to determine the optimal distribution structure: number, location, market region and function of the European distribution centers.

Benefits

  • Insight into current supply chain characteristics and performance provided by the systematic analysis
  • 15% savings on the total European transportation and warehousing costs were identified.
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