Redesign of the European Lens Care distribution structure at Bausch+Lomb
The existing European distribution network for lens care products of Bausch+Lomb, an international operating Eye Health company, consisted of two main DCs, several satellite DCs, and distributors in the emerging markets. Developments in sales and costs within Europe raised doubts about the optimality of this network.
In the Industrial Engineering design project, three possible distribution networks were developed and tested with respect to resulting costs under a delivery performance constraint. In the first option, one of the main DCs is eliminated and all satellite DCs and distributors are served from the remaining DC. In the second option the two DCs remain in operation, but serve a different set of countries. In the third option, two major European countries are each split up in two regions, which are served from different DC’s.
Analysis of the three designs revealed that substantial cost saving can be achieved with option two and three, or a combination of these options. The design is completed with conditions that need to be fulfilled for implementation of the design options.