Case study:

Logistics Network Strategy

Multinational Grocery Manufacturer

Background & Brief

This client is a global manufacturer with grocery products across a wide range of categories.  SCALA were engaged by the company because of their in-depth knowledge of the sector and their expertise in network and warehousing strategies.  The assignment was to evaluate all UK logistics operations, to assess potential plans for optimisation and support the development of the business case for change.

Project Approach

The project approach involved working very closely with the client’s senior executive team and with individual functions.   A range of future network options were fully evaluated with projections over a ten year horizon.  This included;

  • Detailed transport models that benchmarked current transport operations, evaluated and quantified specific options being considered by the client, and identified further options for evaluation
  • Agreed inventory/stockholding policies for the various scenarios
  • Assessed the warehouse requirements for each scenario and related these to current capacity and capability constraints
  • In parallel, SCALA assessed a 3PL provider and their future site capabilities
  • Assessed future retail service expectations and logistics impact and provided a mechanism for prioritising these and the capability of each scenario to fulfil the expectations

Benefits & Results

  • The benefits & results of the project included the following key outputs:
  •  A fully costed set of business cases
  • Demonstrated that an original client strategy was not justified
  • Provided a clear roadmap forward that met the client’s business priorities
  • Benefits were capability to achieve a range of future customer and market expectations in an efficient

Final Outcome

The client obtained high level approval and is progressing along the strategy developed.