Success Story
Freudenberg Nonwovens
Redesign of European logistics
MISSION
Freudenberg Vliessstoffe KG is the largest and most versatile nonwoven manufacturer in the world. As part of the reorganization of the European supply chain interlining materials, Freudenberg commissioned STREMLER with the structural further development of distribution and production logistics and the flexibilization of production, with the aim of significantly reducing production and logistics costs as well as inventories.
SOLUTION AND WORK PROCESS
Freudenberg commissioned STREMLER AG, to reorganize the supply chain interlining materials Europe with the following objectives:
Structural development of distribution and production logistics
Segment related distribution and largely direct delivery to the main customers
Demand based replenishment control in production (making production more flexible)
Separation of industrial and commercial business
Maintenance and selective improvement of customer service
Significant reduction in logistics costs and inventory
With a core team from Freudenberg, STREMLER AG developed the medium term concept for Freudenberg Nonwovens European Logistics and supported the implementation of the project. The overall project consisted of three sections:
Modification of the logistics center. Weinheim logistics center was converted from the factory warehouse to a distribution center
Direct delivery to customers in Central Europe
Closure of distribution warehouses
RESULTS
Successful engineering of supply chain interlinings in Europe, the main results of the implementation are:
Reduction of stocks by approx. 32%
Reduction of logistics costs by approx. 15%
Closure of 5 distribution warehouses
Savings in indirect sales costs of € 15 million by 2008
All of these results were achieved with a simultaneous increase in delivery service. In addition, they formed the basis for further improvements in productivity in production and distribution logistics. With the redesign of the supply chain, STREMLER had created a platform and initiated a process that enabled Freudenberg Vliessstoffe KG to continue developing these areas in the years after the project was completed.
Arnold Weghmann
Director Corporate Business Development
“With the realignment of European logistics, we have achieved enormous savings in logistics costs, drastically reduced inventories and improved the level of delivery service. The return on investment for the project was less than a year. "
