Using network optimization and greenfield analysis methodology, Maine Pointe developed a plan to expand the distribution center network, reduce freight costs and improve customer service. Leveraging the client’s existing data, Maine Pointe’s logistics and data analytics experts built a computer model of the supply chain. Maine Pointe established a cross-functional steering committee and consulted key stakeholders across the supply chain to ensure real-world constraints and business rules were incorporated into the model, resulting in multiple potential operating scenarios. The computer model was then used to evaluate these scenarios, conduct greenfield analysis, and develop a recommended plan of action for improving supply chain performance.
This plan included:
Maine Pointe’s team also outlined a shipment consolidation strategy to reduce the number of overall shipments to customers and save $0.7M per year. With the establishment of a strategic supply chain steering committee, knowledge transfer, a network optimization framework, and a cross-functional team in place, the organization now has an operating platform to work from when acquiring new businesses and integrating them into the enterprise order fulfillment network.
Maine Pointe’s network strategy team worked closely with the client to build a distribution network optimization plan that achieved the following results: