Atlas Bolt and Screw, one of the oldest operating and an acknowledged leader in the construction fastener industry, solicited AFS for supply chain improvement recommendations to align their Distribution Center (DC) footprint with customer locations. AFS collected network data, modeled the current state and developed multiple proofs of concept. Atlas Bolt and Screw’s objective: Optimizing DC’s relative to customer demand and staging new locations to align with
• Inefficient, cost-heavy network plagued by low productivity and redundant supply lanes
• Lack of manpower and the capability to analyze data from current operations and properly adjust the supply chain
• New strategies to factor in existing customer base, carrier contracts, product segmentation and new product introduction, ultimately reducing cost-to-serve
• AFS created a custom optimization model comparing every combination of existing DCs and potential new DCs for best-of-3 and best-of-2 solutions, the most efficient path showing a 13% reduction in carrier
• AFS rated hundreds of thousands of shipments from both existing and new origin points to previous destinations to highlight current inefficiencies and offer a recommendation for reducing DCs to 3, while still being able to offer a 2-day transit time or below for 97% of shipments.
• AFS delivered Atlas Bolt and Screw customized, in-depth, network optimized reporting leading to a more accurate forecast of customer trends, allowing them to show the value of future product expansion.