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European Distribution Network Study
Agfa produces graphical systems (Offset), healthcare equipment, digital print equipment, film and chemicals. It was announced that the graphical systems division was sold and this is now operating under the name Eco3.
Opportunities
All divisions are stored in a central warehouse in Wilrijk (Belgium), operated by a 3PL. Also, there are 20+ local warehouses in Europe to support local customers.
Because Offset was separated from the other Agfa divisions, the question was how the optimal supply chain would look like: should they stay together in Wilrijk or should they separate, and how?
Eco3 has a big factory of plates in Wiesbaden (Germany), so one of the scenarios was that the Eco3 central warehouse would move to Wiesbaden.
Analysis of Groenewout showed that the best solution for both parties was to stay in Wilrijk. This was supported by a tendering process done by Eco3.
Solution
Groenewout did extensive data analysis for all Agfa divisions and Eco3. Many different network scenarios were analysed and compared. Each scenario was calculated for 3 different plate loading scenarios (changing inbound flows). Also, the results of each scenario were split: savings for Agfa and savings for Eco3.
In a second phase of the project, many what-if scenarios were calculated to look for further savings, for example:
- More direct ex-factory deliveries to local warehouses and to large customers
- Direct ex-factory deliveries to destinations overseas
- Direct import from China to local warehouses
- Closing local warehouses
- Using more parcel shipments instead of pallet
Benefits
- More insight via data analysis
- Cost savings for both Agfa and Eco3