Warehousing Case Study, Bisham Logistics

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Client: Hoffmann – La Roche

The Project:
To identify the optimum location for a new European Distribution Centre. To design the new EDC. To set up implementation plan and implement recommendations and meet target start date.

Hoffmann – La Roche Diagnostics Division supply diagnostic instruments, diagnostics re-agents and consumables together with spare parts globally. In Europe, RDS operated 9 National Distribution Centres supported by a Central Warehouse in Switzerland.
A number of the re-agents have a short shelf life, which results in high stock obsolescence and poor availability of slow movers. In addition to this stock levels were high being spread over a large number of locations.
By centralising the operations into a single EDC it provided an opportunity to reduce stocks, improve stock availability, reduce obsolescence and provide a more cost effective service.

We reviewed transport costs, manpower costs, property costs, customs issues and potential service levels to identify the optimum location. A project plan was set up with clear objectives, responsibilities and critical milestones.
A suitable lease was negotiated and the selected building modified to provide multi- temperature storage compartment. Layouts were completed and handling methodology defined to optimise use of existing equipment within the group.
We organised recruitment of staff, acquisition and erection of racking, cold store equipment,systems and transport contracts to service all European countries

· Identification of the optimum location for a European Distribution Centre
· Successful setting up the new EDC in Strasbourg on time and within agreed budgets. On time was a maximum of 6 months from start to finish.
· A risk free implementation plan for the closure of each National Distribution Centre and the transfer of all activities to the new EDC · A reduction of stock write-offs by more than 50%
· A reduction of stock outs by more than 80%
· Reduction of total stock inventory held
· Reduction of total distribution costs
· Improved service levels with a 24 hours delivery service (from receipt of order to delivery to end user) for all customers in the heartlands of Europe. This includes Austria, Benelux, France, Germany and Switzerland