Redesign of the European distribution structure of imaging supplies at Océ

Océ is one of the leading printing and copying specialists in the world, providing products and services for reproduction, presentation, distribution and management of documents.

The business group Imaging supplies faced the challenge to reduce its distribution costs and commissioned a project to design the optimal distribution structure for its European customers, given the set of available locations of warehouses in Europe.

In the Industrial Engineering design project a number a possible structures where developed, varying both the geographical flows and the logistics service providers engaged in the various parts of the process. The structures were evaluated on their performance, taking into account transportation costs, materials handling costs, inventory costs, and differentiated service levels.
The evaluation revealed a design that made savings possible of up to 6%, while maintaining the customer service at its current level. The design implies a number of non- trivial changes in the current distribution structure.