SUPPLY CHAIN NETWORK OPTIMIZATION

Pound Miles

Outbound Transport Cost

Warehousing Cost

Total Logistics Cost

Next Day Coverage

Scenario Location(s)

DC1 = Bridgeview (20.5%) DC2 = Fordyce (29.5%) DC3 = Florence (21.2%) DC4 = Glenview (7.8%) DC5 = Latta (20.9%)

0: Base

$5,813,000

31,700,000 $3,170,000

$2,643,000

86.8%

I

$7,256,000 $6,481,000

52,908,000 $5,291,000

$1,965,000

65.4%

DC1 = Evansville, IN (100.0%)

DC1 = Louisville, KY (84.9%) DC2 = Santa Fe, NM (15.1%) DC1 = Columbus, OH (57.9%) DC2 = Memphis, TN (35.1%) DC3 = Sparks, NV (7.0%) DC1 = Winchester (23.9%) DC2 = Bolingbrook (38.8%) DC3 = Jackson (30.2%) DC4 = Sparks (7.0%) DC1 = Harrisburg (16.4%) DC2 = Conyers (21.1%) DC3 = Bolingbrook (36.6%)

II

43,400,000 $4,340,000

$2,141,000

69.6%

III

$5,577,000

33,577,000 $3,358,000

$2,219,000

86.9%

IV

$5,055,000

26,709,000 $2,671,000

$2,384,000

92.6%

V

$4,735,000

21,683,000 $2,168,000

$2,567,000

96.1%

DC4 = Dallas (19.1%) DC5 = Sparks (7.0%)

Best vs Baseline 10,017,00 31.6%

$1,002,000 31.6%

$678,000 25.7%

$1,078,000 18.5%

9.3%

CPG Supply Chain Network Scenario Evaluation

The minimum cost supply chain network would yield annual savings of $678k and increase next day coverage by 9.3 percentage points. At an estimated reconfiguration cost of $1.1M, the payback on the reconfiguration would be 1.6 years.

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