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.