CJ Lion

COMPANY

CJ LION, a major consumer products manufacturer headquartered in Seoul.

CHALLENGE

Reduce logistics costs. The company had outsourced all logistics functions to a third-party provider and became concerned that too many inventory locations were operated at high stocking levels, increasing costs.

WHY ABEAM?

Proven experience in supply chain optimization solutions for consumer products industry.

SOLUTION

ABeam designed a supply network optimization and inventory distribution strategy for CJ LION that:

• Defined rules and process for entire supply chain, reducing total inventory requirements
• Merged several distribution centers
• Adopted “cross-docking” concept and modeled proper stocking levels for SKUs at each location
• Implemented IES Supply Chain Management solution
• Consulted on renewal of logistics partners’ contract based on above.

REAL BENEFITS

Tangible inventory and supply chain cost reductions:

• Required distribution centers reduced from 7 to 4
• Direct store deliveries increased by 50%
• Required total inventory stocking levels lowered by 27%