Case Studies

Inventory Optimization Project

LEGO Group

 

Post launch of the Asia Pacific Logistics hub presents opportunities to improve the supply chain network within Asia Pacific and China. The shorter lead times from the Asia Pacific hub to markets allows for a lower inventory holding at logistics hub and local distribution centres, and a higher service level to local markets in Asia Pacific and China.

 

A supply chain lead time optimization project was initiated to investigate the opportunities from manufacturing to end-consumer. Through working across multiple groups such as China authorities, transport carriers and local warehouse operators, the project achieved average lead time reduction of 24% for APAC and China network in 2016, and reduced total inventory holding cost by 14% across Asia Pacific logistics hub and local distribution centres through optimizing safety stock levels.