Regional Distribution Center

Consumer Electronics

Challenge

  • Difficulties to make accurate demand forecasts combined with long transport lead time from Asian manufacturing origins to European markets lead to increased level of total inventory. - Each national sales tried to keep safety stock level "optimized" for each operation.
  • On the other hand, occasional stock-out resulting from difficulties to shift inventory from one country to another.

Solutions

  • Consolidate all European stock centrally ("Regional or European Distribution Center"), and supply into each national/area market from the central location.
  • Centralized inventory management.
  • Value added service, i.e. localization for each market.
  • Analysis on various scenario of RDC location. (see below)

Benefits

  • Total inventory optimization by integrated management.
  • Avoid sales opportunity loss by flexible allocation of inventories according to market situation.