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SCALA CASE STUDY

Logistics Network Review

Multinational Grocery Manufacturer

Background & Brief

The client, part of a global food manufacturing, agri-business & retail business operates a decentralised business model in the UK with separate logistics arrangements for its five UK ambient grocery Business Units. The client was interested in understanding the potential benefits of moving to an integrated logistics solution whilst maintaining the commercial independence of the Business Units. SCALA was employed to model and identify potential solutions together with the associated size of prize. The scope included factory to DC transport, warehousing & outbound distribution of Finished Goods covering an existing network of more than 20 factory/source points, 6 DCs & 500k pallets of customer delivery volume. so enabling the client to decide whether to proceed.

Project Approach

  • Data was gathered across the business units to establish a full understanding of the current logistics arrangements, volume flows and costs
  • Distribution data from the Business Units was modelled to understand the consolidation opportunity which would be a key driver of an integrated solution
  • Using SCALA’s extensive rate database various potential solutions were modelled to identify the cost & other impacts
  • Regular check ins with the key stakeholders ensured ongoing buy in to the process & project
  • A recommendation of was provided with fully supporting rationale, with potential size of prize together with key next steps

    • Benefits & Results

  • The modelling & evaluation identified an opportunity to drive savings in excess of 10%, significant environmental benefits (road miles) and enabling a move to a more strategic solution to better place the business against key future logistics challenges.
  • The evaluation provided clear next steps.

    • Final Outcome

    The client is following the recommendation of taking the solution to commercial review with a 3pl.
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