FMCG distribution footprint optimization for growth in the APAC region

Assignment

Determine the optimal manufacturing and distribution network across the globe for a technology company transforming into a fast-moving goods company with over 1,000 retail outlets across the globe.

Project summary

BCI conducted a global manufacturing and distribution network strategy project to map the current network and to optimize this network for cost effectiveness in the mature markets in the US and Europe and for growth in the APAC region.

Our approach

• Kick off meeting to align on scope, objectives, stakeholders and review work done to date
• Analyses of all relevant data related to costs, volumes, growth, processes and systems, which were gathered in cooperation with the client
• The current manufacturing and distribution networks were modelled and validated with the client. In this phase, multiple scenarios and alternative network structures were proposed
• Benchmarking related to the physical supply chain of competitors in APAC
• Determine the (to be investigated) scenarios, after which they were modelled and analyzed using Supply Chain Guru. Obviously, different sensitivity analyses were performed to test the robustness of the solution
• Finally, results were reported after which BCI composed a road map to present the recommended stepwise transition from the current to the future network

Result

Client has implemented the network changes and has closed several manufacturing facilities and distribution centers. Overall cost savings of 10%. In emerging markets, additional DC locations have been identified to support further growth.