CASE STUDY:

SPARE PARTS EUROPE

RUDEAN CASIANA

PANDURU IASMINA

STURZ ALEX
THE PRESENTATION OF THE
COMPANY

• PRODUCTS: COMPONENT PARTS FOR THE AGRICULTURAL MACHINES (INBOUND: 3

MILLION PIECES, OUTBOND: 0.5 MILLION PRODUCTS)

• THE PRODUCTION PLANT: OSLO, NORWAY

• SUPLIERS: OWN PLANT - 40% FROM TOTAL PIECES

EXTERNAL -2 FROM USA(10% ), 28 FROM CHINA (50%)

• SALES MARKET: EUROPA, OUTSIDE EUROPE( TOTAL 2500 CLIENTS)

 SUPPLY CHAIN MANAGEMENT

SUPPLIERS:
USA, China

PLANT from
Oslo, Norway

WAREHOUSES:
Metz, France;
Own plant, Oslo

CLIENTS:
-northen area: 10%
-the central Euopean: 25%
-France: 25%
-southern Europe: 10%
-eastern Europe: 10%
-outside Europe: 20%
LOGISTICS COSTS REDUCTION
LEAN MANAGEMENT
LOGISTICS COSTS REDUCTION

Optimizing the quantity of goods the principle of mass transport cross-docking

ordered
use of platforms other
LOGISTICS COSTS REDUCTION

• Implementation TMS (transportation management system)

- is a complete software program used by commercial companies to manage logistics
processes and optimize transportation. It will be created an logistics control tower, which
integrated and coordinated all daily supply inflows, from the negotiation of freight rates, to
the scheduling of the entry and transport of goods, to the optimization of the transport plan
through the auto-invoicing of transport payments.
By the end of the year we will achieve reduction in freight costs by approximately 18%-
20% and we will continue to save between 3-5% in freight costs.
OTHER COSTS
REDUCTION

reducing consumables reduction of express deliveries

creating work-at-home option for some employers renegotiation of transport rates

some benefits cuts reducing marketing expensives

outsourcing some services shortening works hour, where is possible

the use of eco heating sources reducing spaces

GENERAL ADVICE

• increasing of transport FTL

• finding new suppliers closer to the factory in Oslo

• using the new eco-efficiency technologies: photovoltaic panels,

waste recycling, the use of packaging from recyclable materials
• closer collaboration with existing clients regarding their needs
GENERAL ADVICE

• collaborations with educational units regarding the training of workers

• vertical expansion of warehouses
• order tracking system
• providing repair services for farmers
• expanding the range of products for other machines that are not seasonal
• looking for new potential clients from near by warehouses
ADDITIONAL INFORMATION

• the exact delivery locations of the products

• modes of transport for parts and products: road, rail, sea, etc

• which are the partnerships concluded to reduce costs

• if the grouping of several orders is used on the same distribution platforms

ECONOMIC DATES

• LOGISTIC COST=15 MILIONS EURO

• LOGISTICS COSTS =10% X FISCAL VALUE
• FISCAL VALUE=150 MILIONS EURO

• PROFITABILITY RATE=PROFIT/FISCAL VALUE X 100%

• PROFITABILITY RATE=3 MILION EURO/150 MILIONS EURO X 100%= 2 %
• PROFITABILITY RATE =2 %
AGCO PARTS WAREHOUSE, JOHANESSBURG,
USA
THANK YOU
FOR YOUR ATTENTION!