{"id":1731,"date":"2024-06-29T14:25:14","date_gmt":"2024-06-29T14:25:14","guid":{"rendered":"https:\/\/aviralconsulting.com\/?p=1731"},"modified":"2024-06-29T14:43:29","modified_gmt":"2024-06-29T14:43:29","slug":"case-5-network-optimisation-for-a-large-consumer-durable-company","status":"publish","type":"post","link":"https:\/\/aviralconsulting.com\/index.php\/2024\/06\/29\/case-5-network-optimisation-for-a-large-consumer-durable-company\/","title":{"rendered":"Network optimisation for a large consumer durable company"},"content":{"rendered":"\n<p>A large consumer durable company with operations at 32 warehouses and 3 manufacturing locations. At time of GST implementation, company was looking for network optimization to optimize logistics cost. Company was having substantial Spares \/ accessories business along with finished goods, which was to be considered for in network design. Aviral executed the project with scope of substantial saving.<\/p>\n\n\n\n<p>Challenges: Key challenges to be addressed in performance management were:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Assessment of network design in GST scenario<\/li>\n\n\n\n<li>Sub optimal efficiency of warehouses<\/li>\n\n\n\n<li>High inventory level in existing network<\/li>\n\n\n\n<li>Criticality of service level in spares<\/li>\n<\/ul>\n\n\n\n<p>Solution: Network design was done with help of Llamasoft. Final solution was delivered considering adherence to service level.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduction of distribution warehouses from 32 to 14<\/li>\n\n\n\n<li>Separate network for Spares with NSD, RDC and spare centres<\/li>\n\n\n\n<li>Spare inventory classification and TAT based on criticality<\/li>\n\n\n\n<li>Reduction in cost by 15% with same service level to tier 1 &amp; 2markets<\/li>\n\n\n\n<li>Consolidation of vendors<\/li>\n<\/ul>\n\n\n\n<p>A large consumer durable company with operations at 32 warehouses and 3 manufacturing locations. At time of GST implementation, company was looking for network optimization to optimize logistics cost. Company was having substantial Spares \/ accessories business along with finished goods, which was to be considered for in network design. Aviral executed the project with scope of substantial saving.<\/p>\n\n\n\n<p>Challenges: Key challenges to be addressed in performance management were:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Assessment of network design in GST scenario<\/li>\n\n\n\n<li>Sub optimal efficiency of warehouses<\/li>\n\n\n\n<li>High inventory level in existing network<\/li>\n\n\n\n<li>Criticality of service level in spares<\/li>\n<\/ul>\n\n\n\n<p>Solution: Network design was done with help of Llamasoft. Final solution was delivered considering adherence to service level.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduction of distribution warehouses from 32 to 14<\/li>\n\n\n\n<li>Separate network for Spares with NSD, RDC and spare centres<\/li>\n\n\n\n<li>Spare inventory classification and TAT based on criticality<\/li>\n\n\n\n<li>Reduction in cost by 15% with same service level to tier 1 &amp; 2markets<\/li>\n\n\n\n<li>Consolidation of vendors<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<div class=\"entry-summary\">\nA large consumer durable company with operations at 32 warehouses and 3&hellip;\n<\/div>\n<div class=\"link-more\"><a href=\"https:\/\/aviralconsulting.com\/index.php\/2024\/06\/29\/case-5-network-optimisation-for-a-large-consumer-durable-company\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &ldquo;Network optimisation for a large consumer durable company&rdquo;<\/span>&hellip;<\/a><\/div>\n","protected":false},"author":1,"featured_media":1735,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[11],"tags":[],"class_list":["post-1731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casestudy","entry"],"_links":{"self":[{"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/posts\/1731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/comments?post=1731"}],"version-history":[{"count":5,"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/posts\/1731\/revisions"}],"predecessor-version":[{"id":1764,"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/posts\/1731\/revisions\/1764"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/media\/1735"}],"wp:attachment":[{"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/media?parent=1731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/categories?post=1731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aviralconsulting.com\/index.php\/wp-json\/wp\/v2\/tags?post=1731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}