Distribution Network Optimization

PetsMart, specialty retailer of pet food and supplies, has more than 640 stores in the U.S. and Canada. The company asked for our help to develop a plan to immediately increase distribution network capacity, taking into account the varying types of facilities, that they were leased, and had minimal automation and capacity constraints.

Scenarios were evaluated against a projected baseline, comparing customer service levels, total network operating costs, capital investment, and one-time facility closure/relocation costs. We determined the optimal number, location, size, and utilization of distribution facilities to be in the network.

Our recommendations led PetsMart to realize an optimal balance of transportation costs, labor, systems and facilities, reducing overall operating costs. Furthermore, the company saved expenses from reduced travel and fewer buildings to maintain

After analyzing the retail and commercial business units, OfficeMax asked us to determine the optimal number, location, and size of the distribution facilities for their network, which consists of 20 distribution points for the combined businesses.

Multiple scenarios, based on projected requirements, were developed and modeled using SAILS (Strategic Analysis of Integrated Logistics Systems) software. Resulting scenarios were evaluated against a projected baseline, comparing customer service levels, total network operating costs, capital investment, and one-time facility closure/relocation costs.

We presented our network recommendations to executive management, along with a detailed strategic network analysis report documenting the overall project and results. Shortly thereafter, the company was acquired by Boise Cascade Corporation.

Pacific Sunwear of California (PacSun) targets young men and women with name-brand casual apparel, shoes and accessories. Stores feature clothing by JNCO, Billabong, Paul Frank, Globe, Dickies and Fox Racing, as well as footwear by hip oldster Vans, among others. PacSun also sells its own private-label merchandise (Bullhead, Breakdown, Good Vibes, and Tilt).

Sedlak was asked to integrate four business entities into a single new facility using common material handling and systems infrastructure, design and implement all components of the material handling system and information systems, and meet the demands of an aggressive schedule encompassing fewer than twelve months from ground-break to completion.

The project team implemented a seamless transition to the new distribution center from the current facility. We coordinated all aspects of the material handling and information systems implementation to bring the facility on line - on time and under budget.

This Fortune 1000 company is engaged in the design, manufacture and sale of lighting fixtures and miscellaneous electrical components for a range of commercial, industrial and residential applications.

Because of slow economic conditions, its lighting business was down considerably and the company needed to find ways to reduce costs immediately. This included cost reductions in its supply chain and distribution network. Sedlak was hired to perform a strategic network analysis to determine the optimal distribution network based on inbound and outbound transportation costs, and also perform a sensitivity analysis on its transportation modes.

Sedlak used best-of-breed modeling tools to determine the best one, two and three distribution center network that offered the client the highest level of cost savings compared to its existing network of five distribution centers. The resulting optimized (2) DC network for the design year resulted in a savings of nearly $5MIL compared to the existing network on transportation cost alone.