Etienne Udry

Entrepreneur, Projects, IT and Logistics

Hub and Spoke Network

yellow van parked on sidewalk during daytime

Go Live : 1999

Results

Realized a pioneer hub-and-spoke network that became the standard of the industry

Objectives

Decrease inventories

Improve spare parts availability

Deliver 4h service contracts

Implement best practices

Scope

19 countries in Europe, Middle-East and Africa

Next-day spare parts distribution

2h / 4h spare parts distribution

Challenges

Following the failure of the previous centralizing strategy, design a new strategy that would be innovative and secured in order to overcome management reservations

Solutions

Centralized European Distribution Centre (in-bound warehouse) for next day delivery

Geo-localization of Strategic Parts Centers (SPC) for 4h deliveries

Automatic replenishments of SPCs from EDC based on safety stock levels

Mirroring between 3PL system and our system via EDI interfaces

Tracking and Tracing available to SGI engineers via SMS alerts

Return kits included with shipments

Reverse logistics out of EDC (parts repairs)