Client situation & approach
A national food retailer grown in recent years through acquisitions. Potential distribution network synergies not been realised. Challenging issues were:
- Different product group characteristics.
- Predicted growth, stretching the capacity of the legacy assets.
- Multiple outlet formats with little understanding of the cost to serve differences.
We used our standard approach with specific emphasis on:
- Segmentation analysis to identify customer needs and logistics product groups.
- Detailed understanding of the key supply chain cost drivers related to the customer types and product groups.
- Developed a network model to evaluate multiple scenarios, retaining Divisional visibility for stakeholder engagement.
RESULTS
Designed a flexible logistics infrastructure to realise operational synergies and support the business expansion plans.
- 17%-20% reduction in operating cost
- Developed a 5-year migration plan and roadmap to seamlessly transition to 4 new warehouses
