SCALA CASE STUDY
Benchmarking Logistics Contract Commercials
Major Distributor in Drinks Industry
Background & Brief
The client, part of a major part of major drinks organisation distributed Wines and other Drinks from a base in South East England. The client was committed to a long term contract with a Logistics Services Provider but with an option for a Benchmarking comparison at it’s mid-point after five years. The client, with the agreement of the LSP, appointed SCALA as the “Trusted Neutral” to undertake that benchmarking.
The Benchmarking incorporated both Open Book and Closed Book activities including :
A central warehousing operation
Distribution across South east England on Dedicated Vehicles
A number of Outbases with Dedicated Vehicles
A “Shared User” service for a wide range of deliveries that could not be undertaken efficiently on dedicated vehicles and benefitted from combining with other clients
Benefits & Results
The project identified areas where operational improvements could be achieved and additional cost comparisons which indicated the potential for savings in excess of £1m per annum. The client is now in discussions with the LSP to examine how move forward.