The Project: "To identify the optimum location for the European Assembly & Distribution Centre, assess appropriate size of the EADC and associated infrastructure and identify potential third party logistics service"

Background

Briggs & Stratton, an operating division of a major US based manufacturer was seeking to move all N American production to Europe and combine with existing European manufacturing. Additionally it was seeking to combine assembly with distribution and establish a single location for all European assembly and distribution. Components were imported from a number of destinations in the Far East, Europe and N. America.. A decision had been made to locate the new EADC in Central Europe to gain advantage of low cost components, real estate and labour. Bisham was assigned the task of identifying possible locations, sizing the EADC and the required transport network

Activities

A detailed analysis of the present supply chain and component assembly operations was undertaken. Inbound component traffic was analysed to establish optimum gateways. Details of present customer base and future growth plans were constructed and detailed costings were established. The data was run through a software programme to establish the optimum centre of gravity based on component and finished goods flows. Bisham also worked with B&S to investigate labour costs/availability, land costs and possible grants in various Cen European countries. 

Outputs 

• A short list of 5 countries ( Czech Rep., Poland, Hungary, Slovenia & Slovakia) was then further refined
• A new assembly and distribution centre was proposed to be established in the eastern region of the Czech Rep.
• A number of potential professional logistics partners were identified
• The site was identified

Results 

• B&S were able to obtain local grants to assist in the building of the EADC
• The first phase of the EADC will come on stream in the second half of
• Work is about to commence on going out to tender for the provision of logistics services
• Initial calculations show that the cost of component assembly and the sourcing of components has fallen dramatically