“Australia Network Modeling”
Newell said: Determine our best APAC – Australia network and if outsourcing DC operations makes sense?
The engineers at Scott Sheldon said: We can do International as well as Domestic network assessments!
Newell’s’s APAC business has been growing at an unplanned rate, along with variations in maturity of various business unit sales. They needed to determine the optimal DC and transportation network to reduce cost and improve reliability of service. Due to their growth variations, they needed a flexible operating strategy, such as outsourcing, to be cost justified and a solution recommended.
The expected ROI on this project was a 2 – 8% overall logistics cost reduction in APAC, an added level of service reliability, along with expertise to provide operational excellence. Newell sought SSLLC as a service provider who could offer both outside expertise and a high degree of Network modeling and operational knowledge, along with deep skills in Third Party Logistics Outsourcing.
The “Ah Ha” moment
Our initial investigation consisting of interviews, site visits, and data assessments, which resulted in benchmark operational and service levels that were sub-par in their industry. This justified the need for the detailed APAC Network Assessment. In addition, we also provided a short-list of 3PL providers, set up provider tours and interviews, to demonstrate that these options were viable and cost effective.
Scott Sheldon performed a APAC network-wide transportation and site consolidation assessment, using APAC service locations, volume, historical in and out shipments, inventory levels, legal and regulatory, and financial variables. We determined the number of value-added iterations and performed the data input, clean up, modeling, and iteration by iteration output, with financial and service outcomes. We prioritized the iterations and recommended the optimal solution. We also developed a 3PL outsourcing program, RFP, weighted results by provider and selection criteria
The project was successfully completed – new site selection, outsourcing to a 3PL provider, and transition of all operations and inventory, over a 12 month period of time.