FEASIBILITY OF FACILITY RELOCATION
Identified financial benefits associated with the relocation of existing distribution hubs, based on relevant freight and inventory holdings. Recommended a +30% reduction of stock levels and $2.8M reduction in freight costs.
THE BACKGROUND
The client, one of the largest steel manufacturers in Australia, requested Siecap to carry out an assessment to identify the financial benefits and, other affected aspects of relocating its set of selected main distribution hubs to a one major site. The assessment was carried out in terms of inventory and distribution management
HOW THE TEAM HELPED
Analysed the inventory management impact of relocation and identified improvement opportunities to reduce inventory levels.
Identified financial impact on both inbound and outbound distribution networks and thereby the overall impact.
Identified the impact of growth on storage, processing and handling requirements.
RESULTS
Optimisation opportunities identified to reduce inventory levels by +30% across the sites considered.
Transport operations modelled and recommended with a reduction of freight cost by $2.8M.
Impact of growth identified with storage, processing and handling requirements.