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"Improving manufacturing and distribution operations since 1958
More than 800 projects completed throughout North America, Europe, and Asia"

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Case Studies


Business: Warehousing/Customer Service - Construction Equipment

Nature of Work or Scope and Results

This work involved 2 projects several years apart from one another. The first project involved a service parts distribution study to determine cost effective alternatives to the construction equipment manufacturer's current contracted parts distribution system. The study was prompted by escalating costs and the adverse effects these costs were having on profitability and the ability of the Client to compete with third party parts suppliers.

The scope of work included review of customer service criteria and objectives, and parts distribution procedures. The objective was to develop recommendations to reduce the cost of parts distribution while maintaining or improving customer service levels. This included a detailed logistics study and an evaluation of the economic and operational aspects of continuing with the current contract distribution service, contracting with another distribution service provider, or developing in-house distribution capability. Site evaluations for distribution center relocation were also performed.

SCG's analysis and report recommended development of in-house capability to manage and support distribution functions while continuing to contract for the actual warehousing, order picking, and delivery work. A program was developed to permit the Client to eventually absorb the parts distribution function.

A second project, involved a bench marking study, the planning and design of a new facility of approximately 300,000 square feet in size, development of materials handling plans, and estimates of labor levels required to staff the new facility. This information is being used as a benchmark comparison for evaluating several 3rd party logistics alternatives.


















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