Client situation & approach
The client was the Finnish & Russian Packed Lubricants division of the world's largest publicly traded integrated petroleum and natural gas company, whose logistics & distribution operations were outsourced.
The client needed to identify the best logistics & distribution model and evaluate potential service providers.
The issues the client faced were:
- High logistics costs
- The current suppliers’ contract expiration
- A non- optimized logistics and distribution model
- The need for strategic logistics scenarios to be considered by the Client for future development (Finland and Russia)
EFESO Supported by:
- Data gathering and analysis of current/forecasted volumes
- Modeling a cost structure according to the current logistics and distribution solution and calculation of the related “should cost”
- Definition of the best logistics & distribution model along with calculation of the related overall cost
- Scouting for logistics and distribution service providers
- Preparing and launching an RFI process for Service Providers, as well as their evaluation and selection
- Design of future scenarios/strategies for supplying the Russian market
Results
- Identification of future strategies according to some key external variables
- Optimization of the logistics and distribution model, highlighting:
- potential savings in logistics costs
- potential savings in distribution costs
- potential improvements in service level
- Identification of the best logistics & distribution service provider according to Company requirements
