Context

  • A regional master plan for the Latin & Central America zone has been in place for 2 years
  • Supply Chain costs generated by this new organization are increasing: +1.5 points in 1 year
  • A 64,000m² regional warehouse dedicated to the local market (Mexico) serves the national platforms in the area
  • Massive operations fuel the local market and export
    • Reception (350,000 pallets / year)
    • Storage (65,000 positions – including 30% broken down in detail)
    • Preparation (~ 600 pallets / day)

Goal

Optimize the full cost of making products available to the Latin America market through improved operations of the regional warehouse located in Mexico.

Methodological Approach

  • Mapping of flows and analysis of the associated complete costs
  • Internal cost benchmark with other regions
  • Diagnosis of Supply-Chain processes and associated organization
  • Audit of logistics platforms and fine-tuning of operational costs by product line
  • Definition of the target organization by logistics sub-process and associated gains

Results

  • 3% reduction in operational costs
  • 20% reduction in retail ETP picking
  • Overall reduction of distribution costs by 16%

 

Duration of the assignment: 3 months

 

 

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