Supply chain modelling using world leading software

A company operating on a global level wished to review its UK warehousing and distribution plans for 16 of its trading companies whose warehousing and distribution requirements were dealt with from a single location.

The stockholding of goods at this location had been reduced substantially. The stock for products manufactured in Western Europe had been moved to the continent. Customers in the UK for these products were served direct from the continent or, for small orders, by a break-bulk process through the old stockholding location. However, for goods manufactured further away, stockholding in the UK was still required. There was also a requirement for a steady build up of stock of goods that were produced throughout the year but had a very high seasonal demand.

We constructed a supply chain model, using the Infor Network Design system. We identified that the goods involved in the break-bulk process should be focussed on a series of UK regional depots, as opposed to the old stockholding centre, thereby eliminating significant unnecessary mileage. When we examined regional stockholding, we found that the transport cost savings did not warrant a multi-site strategy and that although the existing depot was not located optimally, the investment cost involved in moving would outweigh the benefits.