Carlisle SynTec's Infrastructure Planning Study
Profit Point developed an optimization model to trade off transportation and warehousing costs while meeting product demand. The model included the top 100 distribution locations in the US along with Carlisle’s existing warehouse sites as potential locations for the model to consider.
Profit Point was able to identify achievable annual savings of $1 million by showing them how to use their existing network more efficiently and by adding one new warehouse location next to the new manufacturing plant being built. The model showed that Carlisle’s existing warehouses were located in desirable areas regarding operating cost and proximity to vendor, manufacturing and customer locations, but also identified business changes to the way Carlisle manages their inventory at several warehouses, allowing them to realize larger savings. The study also confirmed which new manufacturing plant location out of several candidates was the most cost efficient in regards to transportation costs.
“Profit Point did not come to Carlisle with a pre-determined answer to our logistics issues. They did an excellent job of listening to our needs, working with our personnel to extract the necessary information, and formulating recommendations to reduce our costs.” said Bob Stout, Vice President in charge of Purchasing and Logistics at Carlisle SynTec Inc.