Schneider – Global Energy Manufacturer Network Optimization
350 Vendor Source Locations
1,200 Customer Locations
30,000 Products
6M Annual Customer Order Transactions
18 DCs
Goals
Enhance Asia-Pacific market position by reducing the operating cost of its supply chain network
Optimize the overall level of standing inventory
Delivery of promised levels-of-service to its customers
Challenges
Fast growth through acquisitions in the Asia-Pacific region
Process and practice disconnects due to the unique supply chain infrastructure
High number of stock locations, overlapping logistics services, and unhappy customer segments due to growth in six independent business units in the same region
Region’s cost structure significantly exceeding known benchmarks and metrics
Benefits
Adopting a radically different supply chain strategy post network study
Reducing the operating cost of its supply chain network by decreasing the number of DCs
Optimizing the overall level of standing inventory
Delivering promised levels-of-service to its customers
Streamlining supply chain infrastructure to ready the company for future growth and acquisition
$16M – Annual supply chain savings
Solutions
“Our successful Network Design and Supply Chain Re-engineering projects in Asia-Pacific had two founding key ingredients. One was the science of Dr. John Gattorna, the Dynamic Alignment concept of truly understanding customer buying behaviour and aligning them with the ambitions of the growing business. The other was Solvoyo’s modeling technology that enabled Total Cost to Serve for scenario-based optimization. The perfect combination of using data to eradicate emotionally-based “sacred cows” and driving alignment for a customer-centric supply chain!”
Stuart Whiting, Senior Vice President, Global Supply Chain, Schneider Electric
