International Supply Chain Network Redesign
A European flour company was challenged with high costs and poor logistics service in supplying products to their main customer in the United States.
The end customer in the United States required the client to maintain a warehouse with safety stock near its facility. In addition, the client wasn’t entirely satisfied with the service of the incumbent logistics provider handling the supply chain.
The client tasked LogiChain Solutions with optimizing and re-designing the supply chain from Europe to the United States with the goal of shortening the lead time and reducing overall costs.
Rene first assessed, evaluated, and mapped the end-to-end supply chain network, including routing, logistics partners, lead-time, contract terms, and all logistics cost elements.
This was followed by the development of an alternative supply chain network and operating methods with cost simulation. Rene made recommendations and provided a roadmap for an optimized supply chain and distribution network design.
A market assessment identified potential logistics providers for the end-to-end supply chain as well as individual logistics elements like warehousing or ocean freight.
Rene also conducted a RFP with the identified 3PLs and an evaluation of the short-listed 3PLs. From the proposals, he provided a recommendation of which 3PL to select and facilitated in the negotiation of the logistics providers’ contract terms.
To conclude the project, Rene supported the client in the transition and startup phase, and monitored the performance of the 3PL in the first three months.
The benchmark analysis revealed significant cost saving and lead time potential. Based on Rene’s recommendations, the client selected a 3PL that could manage the entire end-to-end supply chain with more than $250,000 in annual savings (more than 15%). The new supply chain network design also led to a reduction of lead time and carried inventory by more than 20%.