Optimization of the lens care distribution network: reduction of distribution and warehousing costs

The optimization of the distribution network represents one of the possible ways to reduce the distribution and warehousing costs in a company. For this reason, a project aimed at optimizing the Lens Care distribution network was carried out at Bausch + Lomb, an eye health company. The current distribution network, which consists of 2 main manufacturing plants, 2 main DCs (the ELC and the DC in Italy), several satellite DCs, distributors in the emerging markets and final customers in the EMEA region, was studied and analyzed from a qualitative and from a cost point of view. Three main alternative distribution networks, namely design option 1, 2 and 3, were evaluated and compared to the current network. The first option investigated the opportunity of having all the nine countries currently served by the ELC, served by the DC in Italy; the second option investigate the opportunity of moving to the DC in Italy only four countries (Austria, Switzerland, France and Germany); and the third option investigated the opportunity of splitting France and Germany into two areas, namely north and South: the southern part would be served by the DC in Italy, while the northern part would be kept at the ELC. The main conclusion of the study is: the current lens care network should be redesigned and in order to do that, design option 2 and design option 3 seem to be valid and cost?effective alternative. However, in order to implement one of the design options or a combination of the two design options, some other aspects have to be reviewed and taken into account. Furthermore, some lens care specific recommendations and some more generic recommendations are given at the end.