Case Study – Circa 2010-2020 Timeframe

Supply Chain Modelling- Success Story

END-TO-END SUPPLY CHAIN MODELLING

Cost Savings Initiatives

Commodity Boom

Investments in New capital types of equipment.

Lower costs structure

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Supply chain optimization – Robust data modeling identified annual savings of $5 Million.

PROJECT DETAILS

  • Optimize the inbound and outbound supply chains for a greenfield plant.
  • Envisaged outsourcing to save 20 to 25% of overall supply chain costs.
  • Several scenarios and locations modeled to optimize potential costs well before any engineering.
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CLIENT SITUATION

  • Nearly 1,500 km of on-the-ground travel for primary re-search and analysis yielded unique supply chain insights.
  • Inventories were too high, while other products suffered from stockouts.
The Essence Of Business Transformation

METHODOLOGY

  • Nearly 1,500 km of on-the-ground travel for primary re-search and analysis yielded unique supply chain insights.
  • Inventories were too high, while other products suffered from stockouts.
end to end supply chain modelling
Large scale cost saving

RESULTS

  1. Variable costs assumed to be 10% above xx PVC coated aa (estimate RS); the difference in cord weights has been accounted for.
  2. New building to house AA and XX machines (estimate AUD X.XXM, RS); set up costs for extra capacity (estimate AUD X.XX, RS); cost of moving xxx equipment TB.
  3. Total Australia/Asia volume approx. 28,700,000.
end-to-end supply chain modelling
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