Operations Strategy

Optimal Operations and Logistics Strategy: Increased Resilience and Total Costs Minimised

The Background

Our client, a leading Australian plastic packaging manufacturer in the country currently imports bulk raw material feed-stock on a direct to silo basis. Due to changing international supplier dynamics the Client requested that Siecap develop an alternative logistics operating model to assess the viability of adopting an alternative procurement approach.

How the Siecap team helped

Evaluated the merits of a centralised versus decentralised post import operating model.

Assessed alternative international shipping and last mile delivery costs

Assessed silo capacities and product consumption rates to identify the most appropriate material replenishment model (push v pull) and delivery frequency.

Researched alternative bulk PBS trailer types and configurations to select the best fit equipment model for delivering product to silo.

Built a ground up operating model and confirmed the indicative cost per delivered tonne against market based pricing.

Conducted a network study to identify the optimum distribution center location based on a range of traffic speeds and replenishment frequencies.

The Results

Projected seven figure cost savings achieved by adopting an alternative raw material procurement model confirmed

Operating model that utilised standardised logistics solutions developed with a view to providing greater supply chain resilience

Opportunities to secure more competitive international sea freight rates identified

Competitive, alternative options for providing the local distribution task identified

Our Clients

We have delivered results for distinguished businesses and projects in Australia and abroad.