Supply Chain optimization Asia

April 6, 2016 844

Description

HB Fuller manufacturers and distributes high performance adhesive products globally, with a variety of brand names and to various industries.



Opportunities

HB Fuller factories in APAC are producing up to their maximum capacity while market demand is growing rapidly. To support this growth HB Fuller would like to understand where to invest in capacity extension, based on the cost optimum for production & logistics to serve it’s customers for the next 5 years.



Solution

To conclude and advice HB Fuller we followed this project approach:


  • Collecting information & data (volumes, costs levels) of the current business, per product group

  • Setting up a supply chain model in CAST, including costs for sourcing, inbound transport, production lines, production sites, overhead, warehousing, inventory holding and outbound transport

  • Running scenario’s that take into account legislation constraints, optimization of tax & duties and the opportunities such as settlement incentives, labor costs developments

  • The results deviated from HB Fuller’s initial plans


 

Benefits




  • Cost results for wide range of business scenario, showing the benefits of re-allocating production capacities over existing site, extending sites to cope with local growth and investing in new site(s) to serve emerging markets

  • Sensitivity analysis for most interesting scenarios

  • Roadmap to align expansions/investments to the projected growth path









 

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