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Distribution and stocking locations optimization

April 06, 2016 6700 Views

Resin Express is a worldwide plastic, rubber and chemicals distribution company. They distribute branded raw materials in partnership with the worlds leading petrochemical companies like Dow Chemical, DuPont, Borealis, ExxonMobil and Eastman Chemical. Resin Express is part of the Ravago group. Resin Express is an international company located all over Europe, Africa and the Middle East

Resin Express operates 45 sales offices in Europe. As a result of the fast, continuous growth the logistics organization is fragmented i.e. 60 stock points in Europe alone. This setup was perceived inefficient and the objective was to see if and where warehouses could be consolidated to reduce total supply chain costs without affecting customer service.

The European supply chain footprint was evaluated. Alternative scenario’s were defined for the optimal number and location of the European warehouses. In parallel the stocking policy was reviewed (per SKU it was defined in what warehouse(s) to locate which amount of stock).

The following benefits were perceived by our customer:

  • Providing a clear outlook on the future supply chain strategy for Resin express
  • Significant reduction on operational costs through consolidation of warehouses and redirection of stock
  • Ready to implement solution. Resin Express implemented the quick-wins with their own staff directly following the project.