First Level: Case Study
Chemicals are produced at specialized plants and transported to manufacturing sites for processing and packaging. Since the scope is international, products are shipped by sea to various ports.
Inventory rationalization trough A-B-C stratification (high-medium-lower priority) at the Stock Keeping Units (SKU)
Linear Programming Techniques to optimize the routing and the use of storage
Project Parameters: 107 Package warehouse, 30 Manufacturing sites, about 6 warehouse per city,150 Customer Consignment warehouse, average finished-goods inventory of $200 million, over 4000 Finished-goods SKUs
Software to simulate flow patterns and deliveries with considerably less storage place
Implementation of risk assessment tool to identify best shipping route: $10 million inventory savings
ABC stratified SKU-level Inventory program to apply priority criteria to most essential Item : Reduced delivery time on A Items to 2 days
The firm consolidated package warehouses by 45% generating $12 million in annual savings