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Home arrow Case Studies arrow Buck & Hickman: Distribution Cost Reduction
Buck & Hickman: Distribution Cost Reduction Print E-mail

Industrial distribution company needed to significantly reduce operating costs and improve customer service. We engaged in an extensive feasibility study using network and inventory modelling software to identify the optimum network and stocking solution to meet their objectives.

A cost model was developed to demonstrate the savings that would be achieved through network reengineering. This enabled the business to gain board approval for a major investment to halve the number of distribution centres reduce transport overheads and centralise purchasing.

Red Kite was assigned to project manage the process changes and implement the IT component of the network vision. We developed a comprehensive project and resource plan and designed new processes to support the centralisation of inventory and purchasing. In addition it was necessary to develop and execute a strategy to manage the stock dispositions during transition. To achieve this we built a bespoke transition management tool in SQL Server which augmented the Optimiza Inventory software.

The project was successfully delivered, migrating from 31 to 16 warehouses over 21 weeks. The projected savings from the assignment were over £4 million.

 
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