EASY

LOGSITCA
Enabling Flow
ABOUT US Our Client
Forecasting
Analysis
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information, guidance and strategies to
implement truly integrated supply chains
that deliver bottom line results
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OUR CLIENT
Established in 1988, the Company Oannao produces and
distributes kitchenware for semiprofessional and hobby
use, sold in retail chains and specialized shops. Started as a
family business producing wood kitchenware, nowadays the
Oannao produces high-quality, mixed material products
(mainly woods and resins) in a Plant

Warehouse
Site: Bologna Capacity: 7000

Customers: 30 Revenue:
$175m/Annum

Transport:
LTL 0.1/km Demand: 6817 Unit
EXISTING
CUSTOMERS
We evaluated that with current central
warehouse facility and production site,
maximum 20% of the existing capacity units
are shipped to Milan, stats are given below,
while 80% are shipped to 29 other cities, all are
in Northern Part of Italy.

Bologna
Avg Weighted Distance
223 km

Most Distant Customer

410 Km
Trasportation Cost Yearly Fixed Cost Total Cost
$ 151960 $ 60000 $ 211960
Avg Customer Distance
205 Km
CLIENT CONCERNS
Increase Sales in Italian Market
Candidate Locations for Production and
Warehouses to cope up with anticipated demands
Exploition of Economies of Scale
Cheaper Overall Cost
Increase Service Level
Cheapest Transportation Cost
TASK & METHODOLOGY
Analyze the Product Market Demand
Anticipated the Customer Demand in next
4 years
Anticipated Candidate Warehouse Techniques
Location Max_Cover
Min_Distance
Anticipated the requirement for new Min_Cost
Production Site (If required)
Network Mapping to Better Understand
the distribution and distancing
Analyze Cheapest and fastest mode of
Transportation
 Easy Logistica has conducted a forecast
FORCASTING analysis for our client oannao, in order to
better anticipate the possible market
ANALYSIS growth in Italy and EU kitchenware
markets. Predicting Potential new
customers in central and south of italy
and establishment of Production Site, new
Warehouses where deem required.

New Customer Demand Forecast

41 9590 Units

EU Market Candidate Location

$5.74b, 2022 14 Locations
GROWTH &
REVENUE
EU-Italian Kitchenware Market comparative
study shows that both markets are
witnessing steady growth each year after the
COVID-19, for example EU market expected
to rise from $5.74b in 2022 upto $6.40b in
2026. While in italy, $490m in 2022 upto
$680m in 2026 is forecast anticipated.

Therefore, the capacity available today may

be not sufficient to cover the market demand
in the next 3 to 5 years.
5% /Annum upto 4 Years
Evenly Demand by Customers
GROWTH
RATE &
DEMAND
Anticipated Forecast of
Demand and Customer base is
equally increasing over the
years by 5%.
COST ANALYSIS
DEMAND COVERAGE 5 Warehouses Model
We precisely analyzed anticipated distance to demand coverage by
considering warehouses location and number of warehouses in order
to obtain best results, and opportunity for max economies of scale in
Bologna
low overall cost.
Genoa

Andria
Roma

Catania

Demand Coverage Yearly Fixed Cost Total Cost Transportation Cost Avg. Weighted Dist Total Capacity
100% (0-400km) $ 280000 $454113 $ 174113 106 km 28000
MAX_COVER VS MIN_COST
Difference between percentage of demand in km range mincost and mindistance
Most Distant Customer is at 438 Km range
Decreasing Service Level as Customer Base and Demand Increases
Transportation Cost will be more higher to reach out to distant customers
MIN_COST VS MIN_DISTANCE
Bad Service level
Cover much demand as possible
More than 46% of our clients are in range of 400-800 km.
Increase our transportation cost
DEMAND COVERAGE
From Bologna to Bologna: From Bologna to Andria:
Customer Demand: 4432 Units Customer Demand: 1420 Units
FTL Requirement: 02 Truck FTL Requirement: 01 Truck

From Bologna to Catania: From Bologna to Rome:

Customer Demand: 1689 Units Customer Demand: 4829 Units
FTL Requirement: 01 Truck FTL Requirement: 03 Truck

From Bologna to Genoa:

Customer Demand: 3937 Units
FTL Requirement: 02 Truck
 MODE OF TRANSPORT
In Case of Catania, we analyzed the rectilinear
approach and assesed the need of ship cargo
Hence, we sent our FTL Shipment to Sea Port of
Civitavecchia, Rome
From Port of Civitavecchia, third party cargo
shipment used, to Port of Catania
From Port of Catania, the FTL delivered the Product
in our Warehouse

For Rest of the Warehouses, we proposed the 3PL

FTL from Bologna Central Warehouse to Genoa,
Rome, Andria
From Warehouse to customer LTL adapoted

https://www.nhc.noaa.gov/gccalc.shtml (For Coordinates)

PALLETS
EPAL (European Pallet Association), euro pallets are the
standard pallets used for transport in Europe. We recommend
to use them to optimize the lead time.

BENEFITS
Max Load Dimensions
1500 Kg 800 x 1,200 mm

FTL Carrier Pallet Arrangment FTL

30 Pallets/ FTL 13.2x5m

Accident Rate Material Handling

Minimum to None Time Saving
TRANSPORTATION COST
BREAKDOWN
FTL LTL

Distance Base Cost

Bologna to Rome = 303Km Cost for 3PL FTL is Considered $1.2/Km
Bologna to Genoa = 191 Km Cost for 3PL LTL is Considered $0.1/Km
Bologna to Andria = 543K Cost for Ship Cargo is Considered $700

For Catania WH:

Bologna to Rome Port = 269Km
Rome Port to Catania Port = 583Km
Catania Port to Warehouse = 2Km
FINANCIAL ANALYTICS
Distance
Bologna to Rome = 303Km
Bologna to Genoa = 191 Km
Bologna to Andria = 543Km

For Catania WH:

Bologna to Rome Port = 269Km
Rome Port to Catania Port = 583Km
Catania Port to Warehouse = 2Km
Cost
Bologna to Rome = $304/FTL
Bologna to Genoa = $300/FTL
Bologna to Andria = $712/FTL

For Catania WH:

Bologna to Rome Port = $300
Rome Port to Catania Port = $700
Catania Port to Warehouse =
ASSUMPTIONS
Considering one central warehouse and four new warehouses (Total 5)
Each FTL can carry 30 Stackable Pallets, each contain 70 Units (Total 2100 Units on FTL)
Each LTL can carry 10 Stackable Pallets, each contain 70 Units (Total 700 Units on LTL)
Each Cargo Ship can carry 40 ft Trailer, same capacity as FTL (2100 Units)
FTL Cost is $300 for 200Km, and for next 200Km and onwards cost is 1.2/Km
Cargo Ship Cost is considered $700 for full trip 40 ft trailer
 SUPPLIERS
Oannao company orders raw materials, mainly woods and resins from several suppliers
mainly located in Italy and close to the existing factory. There is no supplier restraints,
as there are several alternatives available
RECOMMENDATIONS 1/2
The new warehouse must be replenished by the existing central
warehouse and production site
Existing Plant capacity enhanchment
Existing Human Resources Optimization and Allocation
Less Cost of Survey, Commissioning, Risk Invovled, Legal
Obligation, Capital Investment, Variable Cost
Use of Pull-Push Hybrid Approach for Maximum Service Level
Exploitation
Suggest to keep the layout same for all warehouses to avoid delays
Establishment of 5 warehouses with max capacity will be helpful w.r.t
to future market growth as structural commissionings are not done
over night
RECOMMENDATIONS 2/2
We encourage to keep using Amazon and its logistics serive to sell to
single customers
With our plan and the capacbilities of your proposed warehouse,
there is the window of opportunity to ship your products to other
countries, mainly West and Northern Europe (from Genoa Sea Port),
for Middle East and Eastern European customers will be served from
(Andria via Port of Bari)
 GROUP NAME: FPV SUPPLYCHAIN

Faisal Khan Ajay Parulkar Andrea Viapiana

([email protected]) ([email protected]) ([email protected])

1083321 1083580 1083423

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