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Avery Dennison

European Warehouse and Logistics Strategy

Avery Dennison is a worldwide paper products group of companies involved in production, processing and distribution

The Challenge

• The European operation was experiencing excessive levels of stock leading to high inventory costs, but still with poor levels of customer satisfaction due to a 'non-integrated' supply chain between countries and production sites.
• The wide range of outsourced contracts did not enable the business to secure focus on its own objectives of cost and service.
• ProActive [Weir] were already partnering in a strategic production site review, and the outcome of this needed to be integrated with the physical distribution strategy.

The ProActive [Weir] Approach

• Working closely with the operational teams, full statistics on inventory, demand and production were marshalled.
• Using modelling tools, the team were able to present a range of strategic scenarios to the steering group to enable a business led decision to be taken on the degree of cost saving to be sacrificed for improved service levels.
• A full implementation plan was devised for the preferred option, contracts and in house operations were put in place accordingly.
• A full future proofing of the strategy was carried out to ensure full compliance with the business objectives and future plans for acquisitions etc.

The Results

• 3 central warehouse operations were established and total inventory was reduced by 28%; Overall supply chain costs reduced by 19%.
• Customer service levels established at >97% on time in full within 3 months of implementation.

"ProActive [Weir] brought great clarity to the challenges being faced and assisted us in implementing a highly appropriate strategy and a series of locally owned solutions. The team were extremely sensitive to our need for bringing the regional teams on board with the changes to be made."

Director of Operations