Industry
Analytics Supply Chain Management

Gates

Distribution on own power

Strategic challenge

In 2011, Gates decided to consolidate the Industrial Power Transmission and Fluid Power Transmission divisions and at the same time redesign its distribution model.

A review of the distribution model needed to enable Gates to serve its clients more quickly and to be able to react flexibly to changing market situations in a more cost effective manner.

Approach

Möbius supported Gates from the review of the distribution model to starting the new distribution set-up.

  • Identification of the potential scenarios and evaluation of the expected logistics and financial performance.
  • Construction and support of the tendering process for transport and warehousing to the formation of contracts with the new service providers.
  • Support with the transfer of activities to the new site and the new service providers until start-up.

Result

The transfer from the original site to the new DC was achieved in 6 months.

Fluid Power products now come from various (often overseas) production sites to Gates’ DC in the Ghent port area. Every day, approximately 1000 orders leave from the DC to customers. The DC has an area of 6,000m² and accommodates 4,000 SKUs.

Urgent orders are now sent the same day if they are placed before 4 p.m. Standard orders are delivered within one to two working days throughout the entire EMEA region.

Furthermore, the organisation realized a logistics cost saving of nearly 20% by exploiting internal transport synergies.

The move needed to be done in six months, without causing any form of inconvenience to clients. The fact that we did this successfully is largely thanks to Möbius' strong project management and the high level of engagement by our own team

Luc De Ridder, Distribution Manager
Gates

Thanks for reading