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Determining the optimal warehouse solution for this region

April 06, 2016 6435 Views

Overall supply chain and inventory costs in former East European countries should be minimised for all business groups of Canon Europe (business solution, consumer systems and photo/video). This should be done by determining the optimal warehouse solution for this region taking into account the SCM objectives:
– Cost minimization
– Inventory consolidation
– Ease of transition.

Sales to former East European markets is growing rapidly and further growth is expected. The current east European structure with several sites for each of the product groups is an opportunity for consolidation. Austria with its own warehouse but being in the middle of Central Europe can also be consolidated in a Central European warehouse.

Determine the most ideal structure for the former East European countries

  • CEE warehouse with Austria
  • CNE warehouse

Determine the ideal location for the CEE warehouse taking into account:

  • Required leadtimes to customers
  • Infrastructure (inward and outward)
  • Labor rates (developments)
  • Presence service providers

Execute a tender process and select a service provider

  • Create a longlist (RFI)
  • Value the RFI and create a shortlist
  • Compose a RFQ document
  • Set up a LSP evaluation tool
  • Select a preferred LSP.

Reduction of supply chain and inventory costs as a result of:

  • Consolidation of stock from several warehouses
  • Introduction of direct shipments from Asia
  • Centralization in the most cost effective centre of gravity
  • Execution of warehouse activities by low cost labor

Increase of control over the supply chain due to:

  • Becoming the responsibility of the centralized Canon Europe organization
  • One stock point to control instead of many regional stock points