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Supply Chain Strategy and Inventory Optimization in Food Wholesaler

Client situation & approach

The company is a national food retailer that has grown in recent years through acquisitions. As a result, the potential distribution network synergies had not been realised. Challenging issues where:

  • Different product group characteristics (fresh, frozen)
  • Predicted volume growth, stretching the capacity of the network

Results

We modelled the future demand per postal code and the effect on the supply chain. We ran scenarios to find the best option for our client:

  • Base case: business impact if current situation is maintained
  • Improved base case: what if we optimize current network? 
  • The integrated delivery wholesale option saved 17%-20% in terms of operating cost 
  • Future Case: identified the ideal DC network in terms of footprint and goods flow to accommodate growth