Network Design
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
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
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
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
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
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
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
“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.
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.
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.
