Success Story: Network optimization distribution at Wolf

Conception, modeling and calculation of a new network structure

In order to increase efficiency and reduce costs in the supply chain, Wolf GmbH’s existing network structure was analyzed. Based on this, an optimization and simulation model was created with AnyLogistix. This model was used to develop and evaluate various scenarios and concepts for the future structure of the network. A business case and an implementation roadmap were drawn up for the best solution.

Thanks to Rothbaum Consulting’s expertise in the area of network optimization, we were able to quickly gain transparency about our distribution processes and significantly increase efficiency.
Fabian Dietz, Leiter Supply Chain & Logistics Wolf Brink Cluster

Wolf Ltd.

Leading system provider of heating, ventilation and solar technology based in Mainburg
Part of the Ariston Group, a global specialist for heating systems
2,000 employees generate over EUR 450 million in sales
Active worldwide with subsidiaries and partner companies in more than 50 countries

Services

Carrying out comprehensive data and process analyses using SQL and PowerBI
Development of strategic guidelines and conception of scenarios
Creation of a network optimization and simulation model
Creation of a business case to calculate investments and savings

Results

Comprehensive analysis of the current situation
Creation of a network optimization model with AnyLogistix
Identification of 10 potential locations for a new distribution center in the DACH region
Calculation and comparison of various scenarios, taking into account transportation, rental, warehousing and process costs
Recommendation for opening a new distribution center: 5-10% cost savings, 35% reduction in transport costs, return on investment of 2.7 years

Project description

Global distribution is handled from the main plant in Mainburg, supplemented by regional distribution centers in Europe and Asia. Shipping in the DACH region is handled entirely from the main plant. In order to increase efficiency and reduce costs, the existing network was to be analyzed and new distribution concepts developed. Changes in both the outbound and inbound areas were to be taken into account. In addition, various levels of added value at the new location were to be examined and a comparison made between in-house operation and the use of a logistics service provider.

Procedure

First, the Rothbaum consultants used comprehensive data and process analyses using SQL and PowerBI to gain an overview of the operations. Strategic guidelines were then developed and scenarios modeled to identify new locations and evaluate future network structures. The simulation model was further refined for the most promising solutions. A business case was then drawn up and the implementation was summarized in an implementation roadmap.

Results

As part of the project, a comprehensive analysis of the current status was first carried out. A network optimization model was then created using AnyLogistix software. With the help of this model and supporting market research, 10 potential locations for a new distribution center in the DACH region were identified. Various scenarios were calculated and compared against each other, taking into account transportation costs, rental costs, warehousing costs and process costs.

The analysis showed that opening a new distribution center is the best solution for the existing network. By implementing the project, cost savings of 5-10% can be achieved and transportation costs can be reduced by 35%. The return on investment (RoI) of the implementation is 2.7 years.

Success-Story-Wolf-Network-Optimization-in-Distribution

Portrait of managing director from Hamburg, Kai Philipp Bauer

Dr.-Ing. Kai Philipp Bauer

Senior Manager Supply Chain

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