Network modelling, reorganization & Sourcing

A private equity fund was considering acquiring one of the largest distributors of heavy-duty truck components in North America. A key unknown and potential for value creation was the supply chain and warehousing capabilities of the target. Alaris led the due diligence of operations to quantify and qualify value creation opportunities and challenges, supporting the decision to proceed with the acquisition.

This target became part of a platform that consolidated the operations of multiple distributors of heavy-duty truck components.  The increased scale and scope of the operations demanded a rationalization of assets and implementation of efficiency improvement programs.  Additionally, the firm needed to develop a strategic sourcing and product development group to support growth in Asia.

Alaris led the efforts to identify opportunities and challenges. We:

• Analyzed purchasing data, including freight modes and costs

• Visited and assessed multiple distribution centers and operating locations

• Interviewed key supply chain stakeholders

• Benchmarked existing costs against current market prices

• Assessed effectiveness of supply chain organization

• Evaluated distribution network and identified alternatives to achieve lower cost with the same or higher service levels

Alaris led this multiyear project to launch a new global sourcing organization in North America and Asia as well as capture the burgeoning market or heavy duty value added distribution in China.