ADI balanced its stock to service resulting in high customer service levels and reduced inventory
ChallengesADI faced an ambitious project to transform its entire logistics network: stock centralization, fulfilment process optimization, inventory reduction and high service level delivery were some of the goals of the project. After using ToolsGroup’s solution, the company dramatically improved the performance of its supply chain.
ResultsReduced inventories by 38% Sustained high service levels Increased productivity Cut logistics costs
Project & Objectives
ARC Distribución Ibérica (ADI), a subsidiary of ARC International, turned to ToolsGroup to optimize the balance of stock to service, with a solution based on SO99+.
The goals were to:
- Reduce inventories
- Improve service levels
- Ensure future network capacity from an optimal base
- Optimize the fulfillment processes
The SO99+ solution was first implemented as a pilot, which became a full implementation as part of a project to restructure ADI’s logistics network. This restructuring included both physical facilities (new buildings and distribution equipment) and the IT systems used to manage the supply chain (e.g., latest generation WMS).
On a second phase of the project, the company centralized its inventories and optimized the fulfillment processes by eliminating redundant structures, which improved operating flexibility, lowered logistics costs, and ensured both service quality and proximity to clients.
Results & Benefits
The project had an immediate effect:
- Inventories were reduced by 38% while ADI sustained high service levels throughout
- Increase of productivity
- Cut of logistics costs