Our logistics engagements help our clients make crucial operational decisions using the insights provided by sound mathematical models utilizing optimization and simulation techniques.
Clients typically engage ADecTec when they find their commercial “off–the-shelf” planning systems are not able to provide solutions to their problems. Engagements have ranged from complete logistics process design to focused solutions such as a warehouse stocking policy. The duration of recent logistics engagements has ranged from 12 weeks to 6 months, depending upon the nature of project and scope of work.
Client Success Stories
Service levels
We helped a leading consumer product manufacturer evaluate a significant capital investment in additional warehouse space. The client’s top concern was the impact of the new product sourcing network would have on both service levels and costs. We created a model that optimized the new product sourcing configuration, inventory structure and operating costs to assist in the decision making process.
Store replenishments
A retailer with an extremely large SKU portfolio approached ADecTec with a list of concerns regarding store replenishment processes. We worked with the retailer to develop an optimization model that addressed the issue. The model also enabled the retailer to tailor deliveries to different regions, minimize store inventories and maintain desired levels of product availability at the store level. In the first test region (southeast) the new model saved the retailer $2 million in working capital.
Inventory and Stocking policies
A manufacturer operating multiple warehouses wanted a better way to determine where and how to stock SKUs. Using customer order data, ADecTec combined optimization and simulation techniques to model inventories and stocking policies. The client increased warehouse throughput and was able to shut down one warehouse without compromising service levels. Material transfer savings alone totaled over $1.5 million.
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