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Network Strategy Distribution Centre

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

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