Supply Chain Optimization
Reduced cost-to-serve by 36% and released logistics assets with a book value exceeding €12mn.
The overall program objective was to design a logistics strategy for a major Group which meets or exceeds customer expectations, minimizes its supply chain costs, increases warehousing and distribution capacity and provides sales and marketing with a strategic selling advantage.
The company considered alternative scenarios to organize its supply chain and decided to outsource its operations. The engagement included the analysis of the client cost-to-serve, development of alternative supply chain scenarios, preparation of the tendering document for logistics outsourcing, assistance in selecting logistics partner and facilitation of the actual implementation (i.e. warehousing move, developing of IT interfaces, transitioning the warehousing people to the payroll of the new 3PL, etc.)
The Group managed to reduce its logistics cost-to-serve by €1.7mn p.a., a decrease of 36% and release assets with a book value exceeding €12mn.