Envalior: Reducing Costs and Improving Service Through Near-Site Distribution
A global provider of high-performance engineering materials. In critical industries such as automotive, electronics, and industrial manufacturing, materials must flow efficiently and reliably to maintain operational performance and meet customer demand.
Envalior's existing distribution network required materials to travel long distances to support manufacturing, resulting in elevated transportation costs and limited flexibility in meeting just-in-time production requirements.
Project Overview
The company's existing distribution network required materials to be transported over longer distances to support its manufacturing operations. This resulted in elevated transportation costs and limited flexibility in meeting just-in-time (JIT) production requirements. Inefficiencies in material flow created potential risks to production continuity and responsiveness.
Near-site distribution center implementation
Just-in-time plant support and material flow
$7.0M transportation savings and 90% faster delivery response
Execution Highlights
Reduce transportation costs associated with plant support
Improve responsiveness to JIT manufacturing needs
Increase service levels to the production facility
Outcomes
A near-site distribution center was designed and implemented adjacent to the company's manufacturing facility, providing same-day replenishment capability that supports uninterrupted just-in-time production.
Generated more than $7.0 million in transportation savings over the five-year contract term while creating a more sustainable supply chain through a 99% reduction in transportation distance and a 99.4% reduction in transportation-related CO2 emissions.
Reduced delivery response times by approximately 90%, significantly improving material availability and enabling uninterrupted manufacturing operations with zero production interruptions attributable to material shortages.
Approach
A near-site distribution center was designed and implemented adjacent to the company's manufacturing facility, providing same-day replenishment capability that supports uninterrupted just-in-time production.
Generated more than $7.0 million in transportation savings over the five-year contract term while creating a more sustainable supply chain through a 99% reduction in transportation distance and a 99.4% reduction in transportation-related CO2 emissions.
Reduced delivery response times by approximately 90%, significantly improving material availability and enabling uninterrupted manufacturing operations with zero production interruptions attributable to material shortages.
Improved coordination between distribution and manufacturing operations for greater visibility, responsiveness, and supply chain performance.
TCG's near-site distribution solution allowed us to reduce costs while significantly improving our ability to support just-in-time production.
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