Success Story: Network optimization distribution at Wolf

Conception, modeling and calculation of a new network structure

Wolf GmbH, a leading systems provider for heating, ventilation, and solar technology, is part of the internationally active Ariston Group and operates in more than 50 countries worldwide. To increase efficiency and reduce supply chain costs, the company planned to optimize its distribution structure. Rothbaum Consulting not only analyzed the existing network but also developed a simulation-based optimization model and evaluated various future scenarios. Based on this analysis, the most cost-effective network structure was identified, and a sound basis for decision-making regarding further implementation was established.

The photo shows Fabian Dietz, Head of Supply Chain and Logistics at Wolf.

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, Director Supply Chain & Logistics, Wolf Brink Cluster

From the Need for Optimization to a Cost-Effective Solution

Challenge

To increase efficiency and reduce costs, the existing network was analyzed and new distribution concepts were developed. In addition to analyzing inbound and outbound processes, various levels of value creation at the new location were compared, as were in-house operations and the use of a third-party logistics provider.

Implementation

Through data and process analyses, existing operations were evaluated, future scenarios were simulated, and the optimal network structure was developed. Finally, the results were consolidated into a business case and an implementation roadmap.

Results

Based on a comprehensive network analysis and a simulation model using AnyLogistix, ten potential locations for a new distribution center were evaluated. A comparison of various scenarios showed that opening a new distribution center is the most cost-effective solution and offers significant savings potential.

5-10%

Cost savings

35%

Reduction in transportation costs

2.7 years

ROI of the Implementation

Detailed Results

As part of the project, a comprehensive analysis of the current situation was first conducted.
A network optimization model was then created using the 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.
Taking into account transportation costs, rental costs, warehousing costs, and processing costs, various scenarios were calculated and compared with one another.
The analysis showed that opening a new distribution center is the best solution for the existing network.
Implementing this project will result in cost savings of 5–10% and, in addition, reduce transportation costs by 35%. The return on investment (RoI) for the implementation is 2.7 years.

rothbaum-consulting-success-story-network-optimization-wolf

Portrait of managing director from Hamburg, Kai Philipp Bauer

Dr.-Ing. Kai Philipp Bauer

Senior Manager Supply Chain

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