Reduction in logistics cost per unit
Decrease in inventory days
Reduced working capital requirements and CAPEX avoidance
A leading consumer products company in North America partnered with Sintec Consulting to enhance its distribution network, previously optimized two years earlier. This initiative incorporated updated distribution rules, new transportation modalities, and a new logistics partner to sustain long-term growth. Leveraging Coupa Supply Chain Design & Planning (SCD&P) and the expertise of Sintec’s Supply Chain Center of Excellence, the company improved cost efficiency, reduced inventory levels, and optimized working capital, ensuring a more agile and resilient supply chain.
“Revamping the distribution network with new transportation modalities and a logistics partner to fuel long-term growth”.
In 2024, the company faced the challenge of updating its distribution network to support future growth. Although the network had been optimized two years earlier, there was a need to incorporate updated distribution rules, introduce new transportation modalities, and integrate a new logistics partner to sustain growth for the next five years. This presented complexities in aligning these changes with the company’s evolving business needs and objectives.
The company partnered with Sintec Consulting to optimize its U.S. distribution network and improve inventory management. With Coupa SCD&P as the core technology for advanced simulation and multi-echelon optimization, Sintec Consulting provided a comprehensive business vision through its Supply Chain Center of Excellence. This approach enabled precise decision-making and aligning supply strategies across the U.S. and Mexico, ensuring greater operational efficiency.
The project delivered significant improvements across the distribution network. Logistics costs per box were reduced by 27%, while inventory days decreased by 33%, optimizing working capital and avoiding unnecessary CAPEX. Service levels reached 95-98%, ensuring product availability and minimizing shortages. The integration of new distribution nodes, optimized inventory policies, and the use of Coupa SCD&P enabled a resilient, cost-efficient network aligned with long-term growth.
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