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A
global leader in the manufacture and distribution of hand power tools needed to
respond to the introduction of the Euro by restructuring its European
distribution operations. The imperative for the company was to quickly
reduce its SG&A costs in order to maintain its competitiveness in Europe. One
of our consultants led a joint project team in the development of a
Pan-European supply chain strategy, business case, and implementation plan.
The assignment scope included the centralisation of European warehousing and
distribution operations, improvement opportunities available from implementing
Advanced Planning Systems (APS) for integrated demand and supply planning,
and a strategic sourcing review of non-production spend. A cornerstone
of the new strategy was the setting up of a new central European
Distribution Centre (EDC), able to serve the Company’s European markets
within 24-48 hours. The resulting European network more than halved
the number of warehouses the company needed to operate, and would lead to a
significant reduction in distribution costs |