Hub and Spoke Network
- Logistics
- Logistics Manager EMEA
- Silicon Graphics
- 29387
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)