Recommended an optimal logistics network model, incorporated with the client’s purchasing policies, practices and distribution network, resulting in a $1.4 million reduction in cost of purchases and a $12.4 million reduction in Stock on Hand.
The client delivers electricity through two separate distribution networks. Two networks operating under one umbrella opens up a wide range of collaborative opportunities. Thus, the client requested Siecap to carry out a comprehensive assessment over its logistics network.
How the Siecap team helped
Conducted a detailed assessment on the purchasing, warehousing and logistics operations over two networks.
Modelled the opportunities and benefits associated with centralisation, relocation and other optimisation possibilities.
Recommended changes to the existing purchasing policies and practices.
Identified resource requirements for the recommended optimisation opportunities.
Recommended an optimised purchasing and distribution model to reduce annual cost of purchases by 9.4%.
Recommended changed to the existing purchasing policies to reduce Stock on Hand Cost by 8%.
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