The European auto manufacturer was expecting sales growth in the United States and needed a more cost-effective distribution network. Products were imported from Europe and made domestically.

Additional ports-of-entry were considered in order to minimize inland miles & cost. The model also included comprehensive ocean, port and inland transportation costs.

We built and exercised a network design model to optimize the current network & prepare for additional product sales in the US market for the European auto manufacturer. The solution included an optimized choice of European port-of-departure to minimize end-to-end transportation cost.

We identified over 12% savings in the network, by introducing two new ports-of-entry. The solution reduced inland transportation & associated costs from the East Coast into the central part of the US by using new ports.