Consumer Electronics
Challenge
- Difficulties to make accurate demand forecasts combined with long transport lead time from Asian manufacturing origins to European markets lead to increased level of total inventory. - Each national sales tried to keep safety stock level "optimized" for each operation.
- On the other hand, occasional stock-out resulting from difficulties to shift inventory from one country to another.
Solutions
- Consolidate all European stock centrally ("Regional or European Distribution Center"), and supply into each national/area market from the central location.
- Centralized inventory management.
- Value added service, i.e. localization for each market.
- Analysis on various scenario of RDC location. (see below)
Benefits
- Total inventory optimization by integrated management.
- Avoid sales opportunity loss by flexible allocation of inventories according to market situation.
(Location analysis)
