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Optimizing the Global Supply Chain: Transforming Distribution to Reduce Cost and Improve Performance

Optimizing the Global Supply Chain: Transforming Distribution to Reduce Cost and Improve Performance

CHALLENGE

A global manufacturer of electrical and motorized components was experiencing significant inefficiencies following years of growth through acquisition. Its U.S. distribution network had become overextended, with redundant and underutilized facilities driving up operational costs. Transportation expenses were increasing due to misaligned warehouse locations and inefficient routing. Inventory imbalances were common, with some regions facing stockouts while others were burdened with excess or obsolete stock. The absence of effective product lifecycle management, combined with fragmented WMS and ERP systems, limited the organization’s ability to gain real-time visibility and make informed, data-driven decisions.

OUR ROLE

  • Served as strategic advisor and interim leader to stabilize operations and align logistics, inventory, and financial objectives
  • Partnered with finance, operations, and IT teams to unify planning, performance reporting, and technology platforms
  • Guided implementation, training, and adoption across multiple sites to ensure lasting process and system improvements

SOLUTIONS

  • Conducted a full analysis of network performance, costs, and capacity 
  • Redesigned the distribution footprint, incorporating labor and real estate studies
  • Optimized transportation routes to reduce shipping time and expense
  • Implemented a pull-based replenishment model and rebuilt the S&OP process
  • Replaced outdated systems and eliminated unnecessary software spend 
  • Introduced real-time inventory tracking and dashboard-based KPIs
  • Established a continuous improvement model aligned with Lean practices
  • Facilitated cross functional workshops to align leadership and operations teams 
  • Built a roadmap for scalable growth and future market expansion
  • Supported change management efforts, including training and adoption sessions
  • Integrated multiple WMS and ERP platforms into a unified reporting structure 

OUTCOME

  • Transportation costs reduced by 15%
  • Inventory holding costs lowered by 20%
  • EBITDA margin improved by 4% due to warehouse consolidation 
  • Delivery times decreased by 18% in key customer regions 
  • Customer satisfaction sustained despite a reduced facility footprint 
  • System visibility and reporting capabilities significantly improved
  • Leadership gained clearer, real-time insights to drive performance 

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