
Improve the Full Cost of Making Cosmetic Products Available in an Overseas Market
A world leader in cosmetics wants to optimize the distribution costs of its products in Latin America. KEPLER offers to improve the operations of its regional warehouse.
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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