Optimization of distribution and transport
Icopal Siplast manufactures waterproofing solutions. The company has two plants and organizes its own distribution logistics. Icopal Siplast serves four markets, with very different expectations in terms of service (Corporate, Civil Engineering, Trade and Do it yourself).
It relies on a network of nine local distribution centers. Currently, however, a changing market and professional customers’ demand for a more local service and custom logistics service pose new challenges.
A benchmark by the Icopal Group also revealed that the transportation cost at Siplast is significantly higher than in other BUs.
Analysis of the existing flows and benchmark
Taking into account evolutions in terms of size and frequency, Möbius subdivided the orders into segments. It was then able to create a model based on the transportation cost per kilometre and carry out a detailed benchmark of the performance.
Determining and allocating flows
Möbius suggested a combination of four types of service providers: large regional hauliers, small regional hauliers, national players and express transport.
In addition to the transport tenders, Möbius also developed other ideas for improvement which were simultaneously implemented:
- A technical improvement of the rolling stock and the specific tools for unloading on construction sites.
- Formalization of the service by establishing a catalogue of logistical services.
- An organizational component for the use of the regional warehouses.
A changing secondary distribution
Möbius prepared the transformation of the secondary collection network to help attract new customers. The greatest leverage in the evolution of this network was generated by the selection of the most suitable locations, the range and (re)stocking policy and the local service.
Collaboration with Möbius has led to the following concrete deliverables:
- The project generated profits of more than 13%.
- The transport budget was reduced by 10%.
- Another three percent was gained thanks to the invoicing of new logistics services.
- Finally the evolution of the organisation of the collection points allowed Icopal Siplast to attract new customers, which consolidated its market share in France.
I greatly value Möbius's methodological approach, but I especially appreciated the human quality of their very passionate and modest consultants. I think these are indispensable assets for successfully completing such a mission.