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SCALA CASE STUDY

Logistics Network Review

Major Ambient Food Manufacturer

Background & Brief

The client, a major manufacturer of ambient food products was undertaking a strategic business review in order to create a three year plan. Within this they required a comprehensive end to end review of its logistics operation with the identification of key opportunities for cost efficiencies. The client had a UK footprint of three large factories and two in house warehouse operations together with a mixture of in house and outsourced transport. The review was to identify what key opportunities existed, together with identification of the implications of change, and a recommended implementation plan. SCALA were requested to complete this within 8 weeks.

Project Approach

  • Significant data gathering to understand the current operation including volume flows through the supply chain network, current service arrangements & current costs
  • A review of a number of performance areas was undertaken including level of down vehicle utilisation, level of double handling within the network, warehouse operating costs, palletisation & pallet fill, external transport rates
  • Evaluation of different product flows through the network in order to reduce product double handling
  • Warehouse layout modelling in order to identify higher space utilisation in order to avoid external storage

    • Benefits & Results

  • SCALA identified opportunities for in excess of £1.5m net cost savings deliverable within a two year time frame equating to >10% cost base
  • A recommendation was made to remove one of the in house warehouse operations & move to an out sourced solution
  • A clear implementation programme was provide to achieving the recommendations was provided

    • Final Outcome

    Based on SCALA recommendation, the client has initiated a number of the recommended opportunities
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