Understanding Mazda’s Challenges
Mazda Automotive Europe, a key division of a renowned Japanese conglomerate, handles the sale and distribution of vehicles and spare parts across the continent. With all spare parts arriving in the port of Rotterdam, efficient distribution is crucial. However, Mazda faced logistical challenges due to suboptimal warehouse locations, particularly in new markets, leading to high logistics costs that were difficult to estimate.
Mazda’s numerous warehouses were not always strategically placed, causing exorbitant logistics expenses. Their primary goal was to identify optimal warehouse locations to reduce these high costs.
The Solution – Network Optimum
Partnering with Belgium’s C&W Logistics, we analyzed Mazda’s logistics network, examining warehouse positions, dimensions, capacities, cost structures, and distribution timelines. Using advanced mathematics and Data Science, we developed an algorithm to process vast amounts of data quickly. By integrating millions of data points from Google Maps, we identified a Gravity point—an optimal location minimizing distances to both Rotterdam and various outlets. Our user-friendly Network Optimum App, featuring intuitive screens and dashboards, was the result.
Business Value and Benefits
Our solution exceeded expectations, pinpointing optimal warehouse positions even in new markets. This allowed Mazda to optimize their existing warehouse locations, leading to a 20% annual cost reduction and millions of euros in savings over the coming years. Our innovative approach not only streamlined Mazda’s operations but also set a new standard in logistical efficiency and strategic planning.
