Executive Briefings

Optimized Network Configuration Creates Higher Efficiency, Lower Operating Costs

Challenge: Our client was facing consecutive increasing operational costs over the last two years; executive management needed a clear picture on how to turn this trend around.

Solution: LHC started with a high level operational assessment of all existing facilities, uncovering key cost drivers, process irregularities and efficiency opportunities. The assessment included a cost-to-serve ratio analysis, by which we were able to explore optimization opportunities by challenging cross functional business requirements. It turned out that several businesses requested ridiculous operational efforts (and costs) to meet the agreed sales requirements. Thereafter we optimized client's network configuration for both existing situation as well as 'normal' business level requirements by embedding a segmentation philosophy on both product and customer.

Results: The project lasted a couple of months and resulted in a double digit saving on COGS and a welcome one-off cash flow by selling the redundant warehouse facilities.

About the Solution Provider: LHC is an international Supply Chain Consultancy firm. LHC's team of experienced professionals focus on achieving measurable operational results by tailoring available supply chain concepts to our Clients' unique requirements. LHC works closely with its Clients to develop strategies that enable sustainable improvements with a positive cash flow/EBITDA effect for the Client.

Web:  www.LHC.nl

Email:  info@LHC.nl

Phone:  +31 40 293 86 16

Solution: LHC started with a high level operational assessment of all existing facilities, uncovering key cost drivers, process irregularities and efficiency opportunities. The assessment included a cost-to-serve ratio analysis, by which we were able to explore optimization opportunities by challenging cross functional business requirements. It turned out that several businesses requested ridiculous operational efforts (and costs) to meet the agreed sales requirements. Thereafter we optimized client's network configuration for both existing situation as well as 'normal' business level requirements by embedding a segmentation philosophy on both product and customer.

Results: The project lasted a couple of months and resulted in a double digit saving on COGS and a welcome one-off cash flow by selling the redundant warehouse facilities.

About the Solution Provider: LHC is an international Supply Chain Consultancy firm. LHC's team of experienced professionals focus on achieving measurable operational results by tailoring available supply chain concepts to our Clients' unique requirements. LHC works closely with its Clients to develop strategies that enable sustainable improvements with a positive cash flow/EBITDA effect for the Client.

Web:  www.LHC.nl

Email:  info@LHC.nl

Phone:  +31 40 293 86 16