Case Study

Network Optimization Paves the Way for Operating Profitability

Network Optimization Paves the Way for Operating Profitability

Network Optimization Paves the Way for Operating Profitability Industry: Specialty Retail Problem: Determine best supply network to minimize logistics cost and maximize customer service. Mission: Support national expansion of a major retail specialty chain by identifying the optimal number, location and mission of distribution centers. Results: Immediate savings of 6% of supply chain cost by minor reconfiguration of the current network. A five-year plan to open three new distribution centers, the first scheduled to open Spring 2008. A complete evaluation of the costs and benefits of using multiple service points for any given store. A pro-active evaluation of the cost impacts of increased use of Pacific Rim sourcing. Actions: Worked with senior management to understand and develop a basel

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