Hatmill were asked to develop a centralised distribution network for an automotive component distributor in order to provide a solution to their availability challenges and deliver cost savings.
The result: a new NDC operating through a hub and spoke network.
Hatmill were asked to develop the client a central distribution solution which would provide both financial benefits alongside improved availability.
- Infrequent stock replenishment direct to branch was leading to poor availability
- Long supplier lead times prevented peaks in demand being replenished promptly
- The buy-in price of components was inflated due to it including delivery costs to local branches
In order to help the client, achieve their supply chain goals we:
- Completed analysis on existing supplier delivery costs to branches in order to identify the size of the opportunity
- Undertook centre of gravity analysis to understand the optimum location for an national distribution centre (NDC)
- Collaborated with suppliers to develop the lowest cost processes through the end-to-end supply chain
- Applied fresh food stock allocation and picking methodology to deliver industry leading fulfilment rates
- Built and established a 100,000 sq. ft. DC providing daily replenishment and returns to the client’s growing branch network