Case Study: Unlocking Efficiency Across Borders

A leading global coatings manufacturer was grappling with rising logistics costs and service shortfalls across its North America and EMEA distribution networks. Over time, the network had grown organically, resulting in inefficiencies that drove up costs and slowed deliveries.

With 27 plants and 45 warehouses scattered across two continents, the company faced multiple challenges: Distribution centers were often located near plants rather than demand hubs, leading to inflated transportation costs and extended lead times. Logistics expenses were substantial, with annual transportation costs reaching $120 million in North America and $75 million in EMEA. At the same time, service levels were falling short - only 64% of shipments met the 2-day delivery target, directly impacting customer satisfaction.

Fragmented operations compounded the issue. An overreliance on small third-party logistics providers (3PLs) resulted in a complex, costly network that lacked the scalability to meet growing demand. The company’s existing distribution model was also holding back future growth, particularly in key segments like Mobility, Refinish, and Industrial Coatings. It needed a strategic overhaul, one that would reduce costs, improve service levels, and create a flexible, scalable supply chain built for long-term success.

Miebach took an end-to-end approach to redesign the distribution network, focusing on cost efficiency, service improvement, and future scalability. We began by building data-driven network models to assess current performance and identify inefficiencies, setting the foundation for a future state design that explored both greenfield and brownfield scenarios to optimize warehouse locations, capacities, and product flows.

A key focus was SKU-level optimization, streamlining inventory placement for hazardous and non-hazardous materials to cut costs and improve flow. We also ran scenario planning and sensitivity analyses, stress-testing network designs against varying demand and cost conditions to ensure resilience and adaptability.

The final design proposed a lean, five-node greenfield network that balanced cost savings with service improvements, strategically repurposing existing assets where possible. To ensure seamless execution, we provided a detailed implementation roadmap covering site transitions, 3PL selection, system integrations, and inventory transfers - delivering a scalable, future-ready supply chain optimized for long-term growth.

The optimized network would deliver significant cost savings, enhanced service levels, and increased scalability, positioning the company for long-term growth.