At A Glance
The construction implements and attachment industry has been a competitive space for decades. The aftermarket offers retailers and end-customers a proven and efficient alternative, emphasizing the need for a reliable source of implements and attachments from the OEM. Following a former Carlisle recommendation to add U.S. network capacity through the addition of a distribution center (DC) to their network in a high sales demand region, the OEM now had the network capacity to support forward-deployment of implements and attachments. The move would provide enhanced service levels to retailers and provide a reliable source to order from.
Carlisle assisted the client in assessing all supply chain costs incurred by adding implements and attachments to their spare parts distribution channel. A sales opportunity analysis was also performed, to quantify the return on investment that an increase in service levels would provide.
To execute this network analysis, Carlisle followed a three-step approach:
- Supply Chain Data Analysis: Cleansed and validated supply chain data to provide an extensive network analysis of the client’s current state implements and attachments business
- Network Modeling: Simulated the client’s current state network, along with multiple future state forward-deployment scenarios. Outputs from the models were used in a cost-to-serve analysis to detail:
- DC space (storage) requirements
- Transportation costs
- Warehouse property/fixed costs
- Inventory carrying costs
- Network labor requirements
- Service Level and Sales Opportunity Analysis: Evaluated service level improvements, as well as sales and units in operation (UIO) data, to realize the resultant potential sales increase for storing product closer to the retail base
Forward-deployment of implements and attachments to the client’s network DCs would significantly enhance service levels to retailers.
|Order Response Time (ORT)||1-2 Day ORT||2+ Day ORT|