Consolidation of 25 distribution centers into 10
38% reduction in distribution costs
Strategic Intent
Correct near-crisis level customer satisfaction issues and out-of-control distribution costs
Situation
- Leading global manufacturer of industrial enzymes
- 10 U.S. and E.U. production facilities with 1,800 employees
- Revenues tripled in three years through acquisitions
- Focus has been on production technology, while neglecting supply chain and customer service
- Customer complaints up four-fold and growing
- Distribution center generates excessive inventories
Issues and Barriers
- Supply chain functions totally fragmented and ineffective
- Sales demand forecasts are unreliable
- Weak production planning/scheduling process
- Distribution suffers from lack of leadership and direction
- Goals and expectations not quantifiable, understood nor linked to formal reward system
- Global organization culture not yet integrated or aligned
Key Implementations
- Redesign all supply-chain-related processes, demand forecasting, production planning, warehouse/inventory management, traffic and order entry/service
- Develop and staff new supply-chain organization
- Implement new distribution control system
- Install effective goal alignment/translation process
- Integrate computer systems to strengthen supply chain
Results
Key Strategic Results
This enzyme producer is a joint venture between two large U.S. and European chemical groups – both of whom were previous Brooks International clients (our sixth engagement for the total group). Including the value of released inventory capital, this initiative generated $7 million in new profit contributions and saved several, previously dissatisfied, major customers.
- Reduced total inventories 54%
- 38% reduction in distribution costs
- Reduced supply chain labor by 10%
- Consolidated 25 distribution centers into 10
Client Perspective
Brooks delivered what they promised. They were definitely the catalyst we needed to achieve this enormous behavioral change. We have completed the largest reorganization in our history and we now have a very solid supply chain infrastructure in place. We could not have achieved in years what Brooks helped us achieve in a few months.
— Chief Operating Officer
