Silgan Closures optimizes international Supply Chain with sophisticated control-tower concept made by Hellmann

In four European production plants, Silgan Closures produces lids for the food industry. Among these are various renowned products of our everyday lives. In 2009, Hellmann analyzed and optimized Silgan’s distribution network, which was the starting point for Hellmann to manage the entire supply chain for Silgan.

Silgan Closures Product

Silgan Closures

Silgan Closures Logo

Starting Situation

Multiple production sites and various regional warehouses had a negative impact on the performance of Silgan’s distribution network. As a result, Silgan had to cope with high logistics cost, as well as redundant replenishment transports between its warehouses.

Solution

Hellmann’s solution included three major elements: By reducing the number of warehouses, Hellmann limited the complexity in Silgan’s network. Multiple regional warehouses were replaced by one central distribution center in Hannover. As a result, shipments can be consolidated and dispatched in single shipments. A new matrix for transport cost for all destinations gives visibility of the transport requirements and supports further optimization processes.

Hellmann implemented a centralized control-tower at Silgan’s production site in Hannover from where all national and international transports are managed. Colleagues in Poland, Italy and Spain add to the picture by holding close contact to Silgan’s customers and local market trends. The control tower uses a sophisticated transport management tool, which supports a continuous optimization of Silgan’s supply chain. In addition, Hellmann operates Silgan’s warehouse at their production site in Hannover and serves as Silgan’s point of contact for all questions regarding logistics requirements.