The design of the European distribution structure of Ricoh was the result of a centralization of multiple European distribution centers. A couple of years after this centralization, Argusi was asked to evaluate whether the structure was still meeting the demands of the current market.
It was concluded that due to acquisitions in Czech Republic and Slovakia the distribution structure in Eastern-Europe changed. The goal was to, given this changing market, evaluate if the current structure was still effective and efficient We focused on the trade-off between distribution costs and service level. More specific we compared scenarios with distribution of finished goods and spare parts from the current distribution center in the Netherlands versus opening a satellite location in the Eastern-Europe region, taking into account both inbound and outbound transport costs.
The project was executed together with a project team from Ricoh to advice the board and support this business case.