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Kodak
UK Supply Chain Strategy
Within the UK, Kodak Polychrome Graphics (KPG) logistics operations, were centred on two warehouses situated in Watford and Leeds. The Watford warehouse serviced the South, and the Leeds warehouse serviced the North and Ireland. This logistics network was a legacy from various mergers and acquisitions that had occurred in the past. Davies & Robson was commissioned to help the company review the logistics options.
There were a number of options available in the total supply chain, including supplying large customers direct from the factories, supplying small customers via wholesalers and changes to the supply lead-time. To determine the effects of these changes, a model was built to determine the stock holding that would be required to service the business, given a range of different scenarios.
The options available included the use of either the Leeds or Watford site as a single UK stock holding location. These were compared to a new optimally located green field site as a benchmark. For the existing warehouses detailed design was required to establish the increased capacity that could be achieved and the implementation costs that would be incurred. Operating methods were reviewed and a specification and cost for a warehouse management system to support the operation was determined. Third party options were also evaluated.
For each option detailed implementation costs, operating costs and capacities were calculated for both warehousing and distribution. These were compared to existing operating costs with a risk analysis for each scenario. The results enabled the project team to take a balanced view on the most suitable strategy to be adopted.
www.kodak.co.uk
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