Optimizing a complex supply chain
A large process industry company needed to improve its service to customers but keep its complex supply chain efficient. Together with the client, August designed a supply chain concept that improved delivery promises to customers. August used Advanced Analytics to vastly improve inventory content and delivery routing.
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Challenge
The company, an industrial manufacturer with a Europe-wide processing network, needed to improve the performance of its supply chain. Sales felt the pressure as competitors were offering good availability, but the supply chain team thought that inventories in the network were not healthy. Sales and the supply chain lacked a common understanding of what an efficient and competitive set-up would look like.
Brave the future
The joint Client-August team benchmarked the competitions’ current delivery promises and planned an improved service promise to up the ante. A series of Advanced Analytics approaches were needed to get to the bottom of the issue. Savings were identified in product routing through a careful analysis of the optimal supply network. Inventory content needed to be revised as well, when genetic algorithms revealed poorly functioning inventory levels. Implications to order-to-delivery process were planned as well.
Impact
Our client was able to move forward on a commercial launch of its new delivery time promise. Changes in the inventory content were implemented and part of the deliveries were rerouted, which dramatically improved overall cost efficiency. The analysis created a basis for developing automated stock replenishment practices and for renegotiating deals with subcontractors.