Steelcase Sees Benefits from Network Design Solution

Supply Chain Solutions uses LogicTools offering to create efficiencies for contract furniture manufacturer

Supply Chain Solutions uses LogicTools offering to create efficiencies for contract furniture manufacturer

Chicago — November 11, 2005 — Supply chain management specialist Supply Chain Solutions has reported early success in devising a new North American distribution strategy for Steelcase, one of the world's largest contract furniture manufacturers, using a network design solution from supply chain planning enabler LogicTools.

"The loftiest goal we had to achieve for Steelcase was to ensure that its end-customers would receive large orders all in one delivery," said Jim Ward, chief operating officer of Supply Chain Solutions. "LogicTools' LogicNet Plus allowed us to cost-justify our plan for nine regional distribution centers (RDCs) that would benefit Steelcase dealers and customers with ease of delivery and cost savings."

The LogicNet Plus software also allowed Supply Chain Solutions to continuously track those cost savings and launch the first two of nine RDCs in a shorter amount of time than expected, according to LogicTools. The enabler said that LogicNet Plus includes a proprietary optimization solver which analyzes various tradeoffs between production costs, warehousing costs, transportation costs and service requirements to arrive at the best distribution solution.

Improving the Customer Experience

"Everything we do must improve the customer experience," said Joe Verbraska, director of supply chain at Steelcase. "The supply chain is a big part of that: if we can meet the needs of our dealers, they can keep their commitments to the customer and ultimately the customer's relationship with us is solidified."

Using LogicNet Plus, Supply Chain Solutions and Steelcase were able to make strides towards higher efficiency, changes that will translate to the company's bottom line, according to Verbraska.

"Our dealers enjoy the fact that fewer trucks are coming to their facilities," he said. "They can clearly see the value of what my team and SCS are bringing to the table. Our new system is really just getting started, and we expect the improvements to continue making a positive and dramatic impact for years to come."


Additional Articles of Interest

— A logistics team is called upon to craft supply chain processes that update logistics and inventory management at the growing retail chain Michaels Stores Inc. Read more in "The Art of Supply Chain Optimization," a Best Practices article in the October/November 2005 issue of Supply and Demand Chain Executive.

— Increased opportunities for customer interaction create new operational challenges for Sales, Marketing and Service — the Demand Chain. Organizations must look beyond technology to the true foundation of creating and managing demand. For more information, read the SCDExec.com exclusive "Trends in the Demand Chain."

— For insights into how the top procurement organizations align with their company's broader business to make themselves invaluable, read "Getting to World-class by Getting a Seat at the Table," the Executive Memo column the October/November 2005 issue of Supply and Demand Chain Executive.


Latest