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European Distribution Network Assessment
Advanced Power Solutions (APS) is a producer of premium quality batteries, with a production site located in Poland. APS has two warehouses in Europe, in Poland and in Belgium. Customers are mainly retailers and supermarkets.
Opportunities
APS was running a Distribution Excellence program to optimize the distribution network in Europe. As part of this program, a study was done to change the warehouse footprint in Europe and to save costs. Also APS tendered transport costs and the results of this tender was used as input for the study.
Solution
Initial blue skey scenarios showed that the optimal footprint had a warehouse in Poland and in Belgium, however on different locations than the actual warehouses. Also the savings were calculated of moving the warehouse.
In a second phase of the study, the allocation of customers to warehouses was further optimized, also taking into account expected future trends.
Also the new transport rates were compared with benchmark rates of Groenewout. It turned out that the rates from Poland to some countries were higher than expected, also due to the current low volumes. However, if the results of the study were implemented, then the volumes would increase significantly.
Benefits
- Opportunities for cost savings
- Benchmarking of new rates