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Network Design

Coles Supermarkets

Coles Supermarkets

Determining the best location and product mix for new national warehouses

Customer

Coles one of Australia’s leading food retailers, with more than 1,500 stores, 100,000 employees and conducting over 11 million customer transactions a week. Coles operates a large distribution network across Australia consisting of over 30 warehouses and hundreds of vehicles.

The Issue

Coles management identified that the rapid expansion of their store network across Australia meant that the logistics network (warehousing) needed to support the expansion required urgent strategic review. Coles management needed to determine the whether new warehousing facilities were required, how big they needed to be, where they were to be located, what products they would hold and when the facilities would be required. All this needed to be determined while ensuring delivery service levels were maintained

The Solution

Lexian was engaged to model Coles’ supply chain and evaluate a number of proposed logistics options. It was essential that the modelling include all relevant detail to ensure all agreed business issues were addressed. The modelling of Coles’ supply chain included:

  • Extensive data collection, collation and interpretation
  • The construction of a “baseline” scenario, that as close as possible, replicated Coles’ historical distribution and costs
  • Identification of scenarios that Coles wished to explore

In the course of modelling their supply chain, Coles was provided with on-going analyses of the cost-components of their production and logistics activities.

Results

The optimisation modelling identified when and where new warehouse facilities were required along with which product grouping should be held in which warehouses. It also identified which existing facilities should be scaled down or merged in order to optimise supply chain costs.

Reference

Coles Myer Limited
Melbourne

Breville

Breville

Determining the best warehouse size and location and inventory holding level

Customer

Breville was established in 1957 and has over the past 60 years grown into one of Australia’s largest importers of electrical products. Based in Sydney, the company turnover approximately $250m in sales per annum selling key brands such as Breville, Kambrook, Ronson and Goldair.

The Issue

The objective of the project was to determine the appropriate size and location of the Sydney warehouse with the view to decreasing the warehousing footprint and cost of operation. The project also explored the relative merits of warehouse self-management verses third party operator, a review of warehouse operations to identify areas for improvement and cost savings and benchmarking warehouse operations and costs against like operations. Additionally, the project was to determine how forecasting, supplier lead time management, product availability and inventory levels could be improved and ascertain the potential inventory and working capital savings that could be achieved through better inventory management.

The Solution

Lexian was engaged to model Breville’s supply chain and inventory holdings and evaluate a number of proposed logistics and inventory options. It was essential that the modelling include all relevant detail to ensure all agreed business issues were addressed. The modelling of Breville’s supply chain included:

  • Extensive data collection, collation and interpretation
  • The construction of a “baseline” scenario, that as close as possible, replicated Breville’s historical distribution and costs
  • Identification of scenarios that Breville wished to explore
  • Sales, inventory holding and forecast information

In the course of modelling their supply chain and inventory, Breville was provided with on-going analyses of the cost-components of their production and logistics activities.

Results

The optimisation modelling identified the location and size of a new Sydney warehouse based on minimising warehousing and transportation costs and optimal inventory holdings. It also identified there was marginal difference between 3PL and self management of the warehouse but significant improvement could be made in warehouse operational efficiency.

Reference

Breville Limited
Sydney

Loscam

Loscam

Determining the best location for a new Sydney Pallet Depot

Customer

Loscam was founded in Australia in 1942. The business provides returnable packaging solutions and equipment used to store and move products through supply chains. The company is focused on delivering high quality, efficient and environmentally sustainable solutions which has led to a position of leadership in the manufacturing and retail sectors.
Today Loscam has become a leading pallet pooling enterprise operating approximately 10 million pallets in Australia and across China and Southeast Asia.

The Issue

The objective of this project is to determine the appropriate number, size and location of depots in Sydney with the view to decreasing the depots footprint and cost of operation. Key to the project was to locate depot(s) near whether return pallets congregate (eg major retailer warehouses) so as to increase response times service levels and at the same time reduce transport and handling costs.

The Solution

Lexian was engaged to model Loscam’s Sydney supply chain and evaluate a number of proposed logistics and inventory options. It was essential that the modelling include all relevant detail to ensure all agreed business issues were addressed. The modelling of Loscam’s supply chain included:

  • Extensive data collection, collation and interpretation
  • The construction of a “baseline” scenario, that as close as possible, replicated Loscam’s historical distribution and costs
  • Identification of scenarios that Loscam wished to explore

In the course of modelling their supply chain, Loscam was provided with on-going analyses of the cost-components of their production and logistics activities.

Results

The optimisation modelling identified the location and size of a new Sydney depot in addition to the existing depot based on minimising depot and transportation costs and the location of where pallet returns congregate. It also identified there was marginal difference between 3PL and self management of the warehouse but significant improvement could be made in depot sorting and repair operations.

Reference

Loscam Limited
Melbourne

Inventory Management

Swann Communications

Swann Communications

Providing a remotely hosted forecasting and inventory optimisation solution

Customer

Swann was founded in 1987 by David Swann in Melbourne, Australia and now has offices in the USA, Australia, China and Hong Kong with global distribution through partners around the world. Swann is a global leader in security monitoring solutions, fun gadgets and I.T. peripherals targeting consumers through retail channels. The company’s products are mainly do-it-yourself (DIY) with easy-to-follow ‘plug-and-play’ instructions, full after-sale technical support and retail-friendly product packaging aimed at home, office and small-to-medium retail users.

The Issue

Swann needed to be able to manage its inventory in several locations throughout the world as well as providing correctly sized and timed orders to its factories in Asia and elsewhere. It also needed to gather forecasts from different countries, which would be managed into orders from Australia. Swann was experiencing a period of exponential growth and had to have a functionally rich solution to ensure that the growth could be serviced by stock around the world.

The Solution

Lexian provided a remotely hosted version of Optimiza Inventory Planner as the solution. Now Swann could access Optimiza Inventory Planner from around the world at all times to both enter forecasts as well as consolidate orders for suppliers. No functionality was lost due to the remote hosting and all aspects of the software are available to Swann who recently took advantage of the complex Bill of Materials (BOM) planning functionality to further improve their raw material ordering.

Results

Swann has been able to continue their rapid growth around the globe supported by around the clock inventory and forecasting management provided by Optimiza Inventory Planner.

Reference

Swann Communications Pty Ltd Limited
Melbourne

Norgren

Norgren

Implementing a forecast and inventory solution for the APAC region to manage both replenishment and project items.

Customer

Norgren has focused on providing innovation right from its start in the early 20th century when pioneer Carl Norgren founded his airline business in his kitchen in Denver, Colorado. Having grown organically and through strategic acquisition Norgren is now part of the global IMI business which carries through the spirit of innovation to create engineering advantage into the 21st century. Norgren is a leading supplier of high performance pneumatic motion and fluid control solutions.

The Issue

While the Optimiza Inventory Planner solution was rolled out worldwide to all sites, Norgren Australia had the issue of managing both replenishment items as well as the more sporadic project items. In addition, there were several countries planned to use the one instance of Optimiza Inventory Planner, which then had to manage several conflicting country requirements at the same time.

The Solution

Lexian installed the Optimiza Inventory Planner at the Norgren offices in Melbourne in 2002. This was successfully configured to manage inventory and forecasts from several APAC countries including India which was recently added. Training was initially done by Lexian, but this has been handled internally by Norgren for several years now. Inventory policy was discussed, formulated and agreed as part of the implementation and this has successfully managed both replenishment and Project items.

Results

Norgren has been successfully managing their inventory for a decade now using Optimiza Inventory Planner. They are regular users of the annual workshop provided free by their support agreement and continually seek to improve their inventory management both corporately and individually.

Reference

Norgren Australia Limited
Melbourne

Pacific Brands

Pacific Brands

Rolling out a unique and standardised supply chain solution across the Group.

Customer

Pacific Brands has come a long way from manufacturing Dunlop bicycle tyres in 1893. Today, Pacific Brands is famous for marketing iconic everyday brands our consumers love including Berlei, Bonds, Clarks, Dunlop, Everlast, Grosby, Hard Yakka, Holeproof, Hush Puppies, King Gee, Mooks, Mossimo, Razzamatazz, Sheridan, Slazenger, Tontine, and Volley. With headquarters in Melbourne, Pacific Brands has operations throughout Australia, New Zealand, United Kingdom, China and Indonesia and over 5,000 employees. Pacific Brands make in excess of 300,000 different products and sell over 200 million units per year.

The Issue

Pacific Brands looked for a solution that could manage their supply chain within a number of businesses but could also embrace a standard methodology in deployment. While initially looking for a replenishment solution, this broadened into forecasting as well as other areas of functionality such as electronic ordering, DRP and ATP (available-to-promise).

The Solution

Lexian initially installed the Optimiza Inventory Planner at Bonds in 1998 as a complete end-to-end solution for forecasting and ordering on both internal and external suppliers. This initial installation was gradually rolled out over a number of years to include all Pacific Brands companies throughout Australia, New Zealand and the UK. The level of functionality built and utilised has grown over the last 15 years to represent one of the most advanced corporate users of the Optimiza Inventory Planner solution in the world.

Results

Pacific Brands has become of the world’s leading users of Optimiza Inventory Planner. With a deep knowledge of their supply chain and the software, they can determine what outcomes will result from the changes they make in the supply chain. While they continue to optimize their levels of inventory, they can set their inventory levels to best respond to the challenges the market has thrown up in the last few years. This can only be achieved through highly skilled people with the right tool for their business.

Reference

Pacific Brands Limited
Melbourne

O’Brien Glass Industries

O’Brien Glass Industries

World wide solution for managing automobile glass

Customer

Established in 1924, O’Brien has over 80 years’ experience in glass replacement giving you peace of mind. O’Brien is Australia’s leading vehicle glass repair and replacement company, serving more than 300,000 motorists each year, 24 hours a day, 7 days a week, 365 days a year. O’Brien is part of Belron’, the world’s leading glass specialists operating in 32 countries. The Belron’ Group has a team of over 12,500 highly skilled technicians that serve more than 10 million customers a year, which is an average of one customer every three seconds.

The Issue

O’Brien required a solution that could manage both fast moving and slow moving automobile glass at its Padstow warehouse.

The Solution

Belron had already selected Optimiza Inventory Planner as its standard solution and Lexian installed the software in 2008. Lexian worked with the Planning team to document its inventory policy and rules, which are still in place today. Recently regional “super-branches” have been created and Padstow now supplies direct to New Zealand with certain glass products. These changes have all been managed through the software and have resulted in the right product in the right quantities at the right time.

Results

O’Brien continues to manage its inventory both at Padstow and regional branches with Optimiza Inventory Planner. They also use the Constrained Planning functionality, which is standard in the tool, to determine the right quantities to fill 40′ containers. These orders occur every one to two weeks and it is imperative that the containers are filled to minimise delivery costs.

Reference

O’Brien Glass Industries
Sydney

Event Management

2000 Sydney Olympic Games
Lexian worked with Linfox who was the logistics provider to the Sydney Olympic Games in 2000. Lexian principally provided transportation modeling expertise to the logistics department of the Sydney organizing committee to determine transport and vehicle scheduling requirements.

2004 Athens Olympics
Lexian provided logistics support to the Australian Team prior to and for the duration of the Athens Olympic Games. This involved the coordination of all freight to and from Athens and organizing the transportation requirements for the athletes and officials while in Athens.
2006 Melbourne Commonwealth Games
Melbourne 2006 IT Manager Anthony Gill has thanked Lexian for the tremendous work done leading up to and during this years Commonwealth Games. Lexian implemented the Master delivery Schedule (MDS) module of the Lexian Event Manager system used to schedule over 13,000 deliveries to 38 venues and locations during games time.

“We extend our thanks and appreciation to everyone at Lexian involved in making the Melbourne 2006 Commonwealth Games and outstanding success. In particular we recognise the passion hard work and commitment of all of the staff at Lexian who contributed to the games and in turn help realize the objectives of the Technology Group as a whole” said Anthony.

The Event Manager Module is designed to optimize the delivery of products and services (including catering, cleaning and even garbage removal) across multiple venues each with multiple delivery points allowing for security checking, delivery window constraints and varying vehicle sizes and capacities.

The system automates the recival of delivery information from a wide rane of suppliers and distributes by email or SMS delivery time slots to suppliers, security check points and venues.

The system has removed the chaos that was characteristic of transportation scheduling at many major sporting events.

2008 Beijing Olympic Games
Lexian completed two major tasks for the Beijing Organising Committee (BOCOG). Initially Lexian was contracted by Linfox in April 2005 to provide advisory and planning support to the Logistics and Procurement Department within BOCOG. This follows similar roles with Sydney 2000, and for the Australian Olympic Team in Athens 2004. The advisory role centred on determining warehousing, transportation, personnel and IT requirements to manage the logistics requirements for such a large and significant sporting event.

Lexian also provided the logistics technology to run the asset tracking, warehousing and transportation requirements of the games.

Lexian developed, delivered and supported a combined Web Based Warehouse Management System (WMS)/ Asset Management System (AMS) and a Master Delivery Schedule system (MDS) for BOCOG. In addition to providing full warehouse management capability, the system is also capable of tracking asset movements between the warehouse and venues, between venues and back to the warehouse. To our knowledge this is the most sophisticated WMS/AMS/MDS system ever to be used by an Olympic Games or Commonwealth Games event.

2010 Singapore Youth Olympics
Lexian Solutions was appointed by DHL in Singapore in December 2009 to provide the Event Manager MDS and WMS/AMS system to the Organising Committee of the 2010 Youth Olympics. The web based system is designed to assist the Organizing Committee to manage their warehousing and transportation requirements of the games. The MDS module optimises the delivery of products and services (including catering, cleaning and even garbage removal) across multiple venues each with multiple delivery points allowing for security checking, delivery window constraints and varying vehicle sizes and capacities. The WMS/AMS module manages the receival, storage, dispatch and disposal of inventory across warehouses and venues.

Lexian, working with DHL (the games logistics provider), tailored the system specifically for the needs of the Organising Committee to meet the particular requirements of games. The system was installed ready for a number of test events to ensure its smooth operation by the time the games commenced.

Philip Chu, Executive Director of DHL and head of the DHL Singapore Youth Olympics Logistics team said he was extremely pleased with the commitment and professionalism of the Lexian team in getting the system up and running and getting the staff trained in a relatively short period of time. He said the system worked flawlessly and enabled DHL to control and manage the movement of assets and inventory between warehouses, suppliers and venues. It will also allow DHL to control the disposal of assets and equipment after the games are completed. He was most satisfied as to they way the DHL and Lexian teams worked together and assisted in ensuring the first Youth Olympics were a great success.

2012 London Olympics
Lexian provided logistics support to the Australian Team prior to and for the duration of the London Olympic Games. This involved the coordination of all freight to and from London and organizing the transportation requirements for the athletes and officials while in London.
2014 Glasgow Commonwealth Games
Lexian Solutions was appointed by the Glasgow Organising Committee to provide the Event Manager MDS and WMS/AMS system to the 2014 Commonwealth Games. The web based system is designed to assist the Organizing Committee to manage their warehousing and transportation requirements of the games. The MDS module optimises the delivery of products and services (including catering, cleaning and even garbage removal) across multiple venues each with multiple delivery points allowing for security checking, delivery window constraints and varying vehicle sizes and capacities. The WMS/AMS module managed the receival, storage, dispatch and disposal of inventory across warehouses and venues.