National Distribution Strategy
Husqvarna in Australia are very significant suppliers of appliances and accessories and are considered amongst the market leaders in ride on mowers, edge cutters, chain saws and other garden and related equipment. Their strength in these ranges has been further enhanced by recent acquisitions of Gardena watering and irrigation products and Talon tools. The national distribution network comprised of a number of warehouses throughout Australia which supplied different market sectors. Advice was needed on warehouse design, 3PL outsourcing potential and overall logistics planning strategy to maximize efficiency and reduce costs.
Henderson Logistics were engaged as logistics consultants to investigate this diverse network and to develop the most viable options for reorganizing distribution in relation to service levels, site locations, warehouse layout, transport planning and operating costs. A variety of factors were researched by Hendersons who are highly regarded for supply chain planning and a series of projects were conducted.
Distribution Strategy Development
Options for centralized versus regional distribution centres were assessed on a cost and service basis. As warehouse consultants, Hendersons prepared concept designs of these alternatives with comparisons demonstrated through cost and operating models.
The potential for outsourcing of at least some of the distribution function was also considered. As specialists in logistics outsourcing, Hendersons examined the advantages and constraints by region and nationally.
Following all these assessments it was decided that centralized facilities were the best solution with a satellite operation in West Australia. Full cost and operating models with accompanying service parameters were then detailed by Hendersons in accordance with their supply chain planning role. These were presented to Husqvarna for consideration and selection of the ideal plan for future distribution throughout Australia.
Tender for Outsourced Services
It was decided by Husqvarna to adopt the 3PL outsourcing strategy. Hendersons were engaged to approach the market for services. A detailed analysis was carried out to fully define the current and forecast throughput and service requirements for each sector of the Husqvarna operations in Australia by region. The work specifications for logistics outsourcing were then prepared and applied to warehousing and transport.
These were accompanied by tender documents in readiness for issue. In their role of logistics planning, Hendersons identified qualified interested service providers to participate in the tender process. This was conducted and Hendersons conferred as necessary with the tenderers to ensure full understanding of the specifications. Offers were then made on a national or regional basis.
Proposals were received for warehouse and transport services by region and nationally. These were assessed to fully comply with the strategy for logistics outsourcing as established in Stage 1 of the Hendersons’ project. Rates and performance factors were ranked for comparison purposes and results were presented to Husqvarna.
Implementation of the Strategy
Contractors were selected for the various sectors of warehousing and transport. Hendersons then acted in their main specialty as logistics consultants to support Husqvarna in the engagement and initial performance monitoring of new arrangements with the appointed service providers. Husqvarna now move forward in their distribution in Australia with the confidence that service parameters by region nationally are sound and that operations in warehousing and transport are highly cost effective.