Schneider Electric’s supply chain is complex. It includes 240 manufacturing facilities around the world and 110 distribution centers.
Schneider Electric needed to develop a model that will help them predict the best way to acquire raw materials and send their products to factories, distribution centres and warehouses around the world. They built a model to analyze all the data points such as existing lanes, rates, transportation policies, flow constraints etc. The model identifies the best path for product flow saving space, cost and time.
200,000 transportation policy data points, 130,000 flow and routing constraints, and more than 150 initial scenarios Reduced 300,000 SKUs into 1,800 product groups based on attributes such as origin, stocking type, and product family to simplify the model.
The company claims: * €8 million savings in transportation costs * Better container utilisation