Logistics costs of the distribution network
Forecast accuracy
Inventory costs
Facing the challenge of an expanding digital channel and rising service penalties, a leading aluminum extrusion company in Latin America partnered with Sintec Consulting to optimize its distribution network and inventory strategies. The new model not only enhanced forecast accuracy but also significantly reduced logistics costs in the distribution network and lowered inventory costs. By streamlining operations, the company strengthened service levels, driving efficiency and positioning itself for sustained growth. This strategic transformation enabled the company to meet increasing demand while improving overall profitability and operational performance.
“Unquantified digital growth, escalating penalties, and inefficiencies threatened the company’s ability to scale – a transformation was imperative”.
The company faced significant challenges as its digital channel grew rapidly, yet its impact on the supply chain remained unquantified. The organization also grappled with negative economic consequences from penalties due to service failures. To enable future growth, they needed to optimize costs while improving customer satisfaction. Additionally, a comprehensive view of the entire value chain was required to design an optimal distribution network and inventory policies.
The company partnered with Sintec Consulting to tackle key operational challenges in optimizing their distribution network and inventory management. With a detailed understanding of the current situation, Sintec helped design and implement solutions to streamline processes and enhance efficiency.
The project delivered highly impactful results, driving improvements across several key operational areas and significantly enhancing performance. Logistical costs for the distribution network were reduced by 8%, while forecast accuracy saw a 15% improvement. Inventory costs were slashed by 30%, and service levels increased by 3 percentage points. These achievements not only streamlined operational efficiency but also played a crucial role in boosting customer satisfaction. As a result, the client’s competitive position in the market was strengthened, paving the way for long-term success and growth.
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