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Situation

The client’s existing distribution network was challenged by changes in sterilisation types and a limited number of suppliers. The client therefore realised a necessity to make a review of the overall outbound supply chain set-up.

Approach

Valcon created a cost model to simulate potential solution ideas. The project provided the client with a deep understanding of the current set-up of the outbound supply chain. Different solution scenarios such as Hub n’ Spoke and consolidation of sterilisation suppliers were examined. Findings included the realisation that there were no financial upsides from making major changes in the current outbound supply chain. Furthermore, the project identified a number of minor changes in the current set-up which could benefit the client.

Results

The project identified key cost drivers in the outbound supply chain providing input for the ongoing optimisation to ensure a cost-competitive set-up.