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Distribution Network Study

April 06, 2016 17142 Views


Agfa-Gevaert N.V. (Agfa) is a German-Belgian multinational corporation that develops, manufactures, and distributes analogue and digital imaging products and systems, as well as IT solutions. The company has three divisions: Agfa Graphics, Agfa HealthCare & Agfa Specialty Products.

AGFA requested a review on its distribution network structure in Europe, in light of the expected evolution in its sector. This review specifically served the purpose to outline a long-term strategy regarding the optimal distribution tactics, i.e. the function of the Wilrijk and Wiesbaden warehouses and for the practicality of a new greenfield distribution network solution.

A European distribution network assessment, with the following viable distribution footprint scenarios:

  • Current distribution footprint (BASE-CASE)
  • Optimized current distribution footprint (BASE-CASE+), containing potential quick-wins within the current footprint
  • Circa 3 to 5 new network scenarios with different alternatives on the number and locations of the warehouses
Evaluation of all viable distribution network concepts:

  • Operational logistics costs
  • Return on Investment (ROI), Net Present Value (NPV)
  • Essential warehouse operations characteristics as building footprint, logistics processes and -equipment
  • A impact on customer service & lead-time.
  • Qualitative aspects as reliability, responsiveness, flexibility, business contingency/risks, “green” arguments and location factors (e.g. distances to rail, port, airport)


Click here for the interview Agfa future-proofs its distribution network