Comprehensive network analysis leads to significant improvement of lead-times

In addition to traditional logistics services, Hellmann Worldwide Logistics provides customized consulting services. Pairing suitable software tools with logistics and industry know how, Hellmann is fully equipped to support our clients’ individual performance requirements.

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Starting Situation

One of the top 10 global electronic equipment companies set Hellmann the task of analyzing optimization potentials of their warehousing and distribution network for the entire German market and parts of the European market. Furthermore, Hellmann was to present a recommendation for possible warehouse consolidation.

Solution

Hellmann Worldwide Logistics conducted a comprehensive network analysis based on our client’s inbound and outbound consignment data. This data was compiled from different transport products such as airfreight, groupage, LTL and FTL as well as parcel services from the German and European markets. Based on a center of gravity analysis and the consideration of further factors such as rental rates and regional employee availability, it became clear that the consolidation of existing warehousing sites into one warehouse in the Ruhr district would result in major cost reductions and quality improvements. Hellmann presented the resulting savings in storage, distribution and lead-time improvements along with visualizations of the current and future networks.