CHEP Supply Chain Network Design

Transcription

1 CHEP Supply Chain Network Design

2 A WORLD LEADER IN POOLING SOLUTIONS 60+ Countries 550M+ Assets 850+ Service Centres 14,500 Employees Primary Operating Brands: $5,535M Global Sales Revenue

3 Brambles Equipment Pooling Products

4 Brambles Operating Model Integrated Supply Chains: End-to-end Involvement Brambles enhances supply chain performance for customers by helping them transport goods through their supply chains more efficiently, sustainably, and safely.

5 CHEP EUROPE NETWORK CHEP handles more than 900,000 annual TL shipments across more than 45,000 lanes CHEP partners with ~130 carriers ranging from national to regional operations Multiple modes sea, rail, linehaul and dedicated Continuous rebalancing across network drives significant logistical complexity The average service centers holds less than 1.5 days finished product

6 STRUCTURE OF SUPPLY CHAIN OPTIMIZATION Global Network Optimization - Using Supply Chain Guru software since PNO team foundation (2011) - CHEP required a powerful tool, to model a very complicated network - Llamasoft was recommended to us. Through consultation and testing we found the Llamasoft Support Team fully understood our needs and was able to support us in a very cost effective way

7 SUPPLY CHAIN NETWORK DESIGN Purpose Challenges Economically conscious, service oriented Supply Chain Responsive to change Enhance Supply Chain intelligence Environmentally sustainable Supply fluctuations Demand fluctuations Seasonality Rising energy and labor costs High transportation cost percentage Cost of inconsistency DESIGN EXECUTE SUSTAIN REPEAT Continuous process, not a one time event

8 NETWORK OPTIMIZATION OBJECTIVE RIGHT PRODUCT, RIGHT PLACE, RIGHT TIME, LOWEST COST $Total Cash = $ Transportation + $ Plant + $ Capital Investment Unbiased approach; although, financial gains strongly assumed Accurate data, cost assumptions, knowledge of network constraints, communication and timely execution critical success factors Appetite and acceptance of change Short and long term opportunities identified that captures immediate financial benefits while building ideal plant network for the future $ Costs # of Plants Service Total $ Costs Ops $ Trans $

9 CHEP Model Model As Is Network Setting up all options? Optimal Model Output Adjusted Ideal Model

10 Modelling challenges Our business is a mix between a pull-push system. On one hand, when customer orders arrive, we check there is enough stock in the optimal plant for supply (pull system), but instead of sending a production order as most of the systems work, we must wait until a collection takes place into this plant (push system), the collection plant being chosen depending on the stock levels (link). LINK (Stock levels) Retail CHEP Customer PUSH PULL

11 Different modelling approaches using Llamasoft s Supply Chain Guru Using SCG Greenfield tool PROS Simplicity Short run time Quick glance at centre of gravity CONS No match between Issues out and Collections results in imbalance No capability of modelling plant activity Challenging international flows modelling Using Consider Facilities PROS Optimal Number of facilities Optimal flows Detailed policies and constraints modelling (Truck load, plant layout, real distance and transportation cost, opening and closing cost everything we can do in a standard network optimization model!) CONS Complexity Long Run time Level of detail required

12 Llamasoft s Supply Chain Guru s Greenfield Output

13 Greenfield tool Distance output and post analysis

14 Conclusions Greenfield Analysis Production - Integrated Supply Chain Guru Greenfield tool can produce an acceptable output when the región is balanced in issues and collections - Creating dummy plants is feasible for small or regional models. By tuning the models we can get closer to the business reality - In a regional model, both methods produce a similar output in terms of number of facilities and geographical location