Transportation flow analysis in a centralised supply chain at Toyota Material Handling Europe

Abstract: This report is the result of a Master Thesis written at Toyota Material Handling Europe (TMHE), with the purpose to map the existing spare part supply chain structure and to analyse future suggested supply chain structures with a focus on transportation flows. TMHE is one of the world’s largest producing forklift distributers with large market shares throughout Europe. Besides the main activity of forklifts the aftermarket of distributing spare parts is a major business. With a current decentralised supply chain, the Future Logistic Concept (FLC) project was established to analyse the possibilities of a more centralised European supply chain. While earlier analyses within the FLC have been focusing on the customer market, this thesis aims towards completing with analyses on the opposite side of the supply chain. It will present an aggregated view over a possible FLC supply chain setup with focus on suppliers, replenishment flows and usage of express transportation solutions. An analysis was performed based on supplier localisation and historically delivered tonnages. To be able to analyse the replenishment flows between European Distribution Centre (EDC) and Regional Distribution Centres (RDC), an inventory control and transportation model was developed. The model calculates costs for inventory holding, replenishment flows and express flows and optimises the relationships between these controlling variables. This makes it possible to analyse the transportation flows in a specified set of possible supply chain structures. The results of the localisation analyses based on suppliers, show that the central part of the supply chain should be located in the northern parts of central Europe. To be able to minimise the supplier inflow facilities should be established in Mjölby and Ancenis. A warehouse in Eastern Europe is probably necessary to be able to keep customer lead times at an acceptable level, but from a supply point of view this location is not supported due to the low amount of Easter European suppliers. The results from the model suggests a supply chain structure with a central distribution centre in Antwerp, Belgium (Scenario 2 in the analysis) and regional warehouses in Sweden, United Kingdom, Spain, Italy and the Czech Republic.