Table of Contents
Effective and efficient Supply Chain performance relies heavily on adapting to meet the changing needs of the business. The consolidation of many industries through Mergers and Acquisitions (M&A) often means that Supply Chains also need to change in terms of structure as well as process, if businesses are to reap the benefits of economies of scale and synergies across business units that Mergers or Acquisitions can bring.
At Logistics VietShip we have assisted many companies in meeting these specific Supply Chain challenges and our work often involves assisting companies to rationalise their supply chain operations. This might involve reducing the number of distribution facilities and transport operations as well as reducing the amount of inventory in the system to match working capital needs. Whilst our specialist modeling and optimisation tools are often an important component of our work, they are just software tools. It is their use by, and the additional knowledge and experience of, our very experienced consultants that leads to successful customer outcomes.
When companies acquire other businesses it is essential that they can absorb the growth into their operations as well as eliminate redundant assets in order to achieve synergies from their acquisition.
Much of our work in this area has related to Supply Chain Due Diligencereviews of potential acquisitions.
Our experience in this area is across may industries, see Customer List
Our work in this area often involves:
- Rationalisation of distribution facilities
- Refurbishment of distribution facilities
- Rationalisation of SKU’s and reductions in inventory
- Realignment of transport operations to meet distribution facility arrangements
- Reductions in transport operations
- Reductions in holding costs
- Reductions in working capital
- Reduced operations cost through achieving incremental cost benefits through rationalised operations.
In developing suitable Supply Chain rationalisation options, particular approaches or techniques used, might include Cost to Serve analysis or Distribution Network Optimisation.
