New Model Vehicle Distribution
Background
Sales in Europe are increasing steadily and production for the region is moving to local plants. A new distribution strategy is required to support these changes for the next generation of vehicles.The strategic review included network design, inventory and order management processes, range rationalisation, build to order policies and partnerships with Third and Fourth Party Logistics service providers.
Issues
Which stock holding option is the best strategy?What is the impact of each option on:
- Costs?
- Inventory?
- Lead time?
- Service?
- Lost sales?
How can capacity be guaranteed at peak times? How should external influences such as changing European Legislation and rail infrastructure improvements affect the solution?
Solutions
Bubble developed an integrated solution for the future which addressed:- Range Harmonisation
- Stock Consolidation
- Consolidation of logistics partners
- Better use of rail
- Optimising the level of build to order.
Taken as whole these recommendations will:
- Lower Costs
- Reduce Inventory
- Improve availability
