Transportation and Consolidation at Elevalt Ltd.
Chris Summers, VP of Supply Chain Management at the oil field services company Elevalt, is engaged in an analysis of his globally dispersed distribution centers (DCs). He must evaluate Elevalt's network of DCs throughout Europe, Africa, and the Middle East to see whether it would be beneficial to consolidate the current network of six DCs to a single centralized DC in either Europe or Africa. Before this decision can be made, he must first optimize the current operation, which appears to suffer from inefficient inventory management. The inefficient inventory management also seems to be driving additional transportation costs. Summers must consider the benefits and risks associated with consolidating Elevalt's DCs while still maintaining his focus on the needs of Elevalt's customers.