Network Optimization (→Flyer)
We model and optimize networks in production and logistics for medium-sized companies. Our customers reduce their supply chain costs, increase their turnover and have more satisfied customers.
Digitization of business models – supply chain simulation
Using Llamasoft Supply Chain Software we map the supply chain of our customers. As per need this may include procurement, production, distribution, provision of spare parts and reverse logistics.
In the baseline, we visualize the flow of goods with countries of origin and target markets. This baseline describes the initial situation against which we compare possible future scenarios. We determine these scenarios in close cooperation with our customers and optimize and simulate their profitability and efficiency (KPI).
The strategic options for action are evaluated by comparing the scenarios with each other. In other words, first test – then implement.
A manufacturer of cleaning products with logistics costs in the three-digit million range was looking for ways to reduce costs quickly, without having to close factories. They wanted to see quick wins within two years. Through our modelling pricess, we found that by shifting the flow of goods, it was possible to save 8% of the logistics costs in the short term.
A Swiss chemicals group with a logistics budget of around 150 million Euros reviewed its distribution as part of a strategic realignment. Instead of supplying hazardous chemical goods directly from the factory, the company introduced regional distribution centres, thereby cutting total logistics cost by 19%.
SPARE PARTS LOGISTICS
When the Swiss National Bank abolished the Euro’s minimum exchange rate and the Swiss Franc shot up almost 20%, a medium-sized Swiss medical technology company moved its production to Slovenia. However as a result, the supply of spare parts, which had relied on the previous network, was no longer ensured. Following our analysis, eight regional warehouses were closed. They were replaced by one central warehouse and vendor-managed inventories for key accounts. The supply of spare parts was stable again.