In-depth insights
Returns on Investment for footprint and warehouse design to optimise inventory along the Supply Chain
Inventory management is the system of keeping tabs on the goods available and sold so that the required materials never run out. However, the enormous product variety-induced complexity renders it even more challenging to ensure efficient logistics.
The prompt supply of spare parts is very important for efficient aftersales service, which is an essential aspect of customer satisfaction. For instance, the aftersales service in the automotive industry must keep an enormous variety of parts and components in stock, not only because of the vast range of car models and individual configuration options but also given model variations over the years. Replacement parts must be available for car owners for a long time. Some German car manufacturers, for example, can supply original spare parts for historic cars that are well over 30 years old. The variety of parts puts immense pressure on replenishment policies around the supply chain.
ALG has been supporting clients in conciliating the ever-growing pressure for product customisation with the necessity to keep the number of SKU as low as possible along the supply chain. We believe the best way to explain how this can be achieved is through real examples that achieved results.
Five real cases are presented in this paper to analyse the issues in different industries from different angles. The aim is to provide an overview of the many opportunities for cost improvement and better services behind warehouse doors.
- Case 1: Improvements in the open yard warehousing of a steel manufacturing plant.
- Case 2: Definition of alternative warehouse designs for a leading retailing company.
- Case 3: Footprint definition and multi-echelon replenishment policies for a global supplier of wind turbine equipment.
- Case 4: Global inventory optimisation after a major acquisition in the Oil Sector.
- Case 5: Data analytics to improve warehousing performance in a vehicle storage facility for a leading European car manufacturer.
