Well Schneider, the company started a transformation program about five years ago. The company has grown through acquisitions. Over 150 years, and it’s the first time they’ve really tackled optimization of the footprint. So the main thing was looking at our global downstream finish goods footprint to determine what improvements or what efficiencies we could get from that. As far as the benefits we’re getting, there’s been several areas.
One, we’ve taken a very customer focused view to any of the redesign we’re doing. So being able to take the customer inputs and put them into constraints in the modeling to ensure that the footprint changes we make line up with customer expectations. Of course there’s the cost factor, changing flows that aren’t efficient, being able to remove notes or DCs that don’t flow there. So it’s been across the board on the service level of cost perspective, and now we’re starting to look at more strategic decisions, current project dealing with a new product launch.
So, looking at new potential supply chains that throw out the old, and how we go to market with the new products. My experience with Llamasoft again has been great. We have heavy usage of the support group because we tend to break the application or have models that don’t solve, so very responsive. I actually get a sense they enjoy working with us because we don’t ask simple questions. So all around from right in the front through to support to the product managers. It’s been a great experience.
Our road map, at the moment we finished all our global modeling, our regional modeling on a footprint basis, again still focused on finished goods, distribution. We’ve started looking at some business unit product line type of line type of models on a [inaudible 00:01:43] basis. Still finished goods, but looking in now starting to potentially go into some more upstream. Probably not production at this point, we may eventually but potentially on the sourcing side of things, looking at the distribution side there. We’re also starting to look at a little bit on the inventory side of space as well.
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