Review of On Site Factory Warehouse Operation and Evaluation of Out Sourcing Strategy

Global Branded Ambient Grocery Manufacturer

Background & Brief

The client, part of a major global corporation, believed that the performance of its Factory Warehouse operation was significantly suboptimal and expensive. SCALA’s brief was to provide a review of the operations and its costs to provide an independent view as to cost performance, identify key opportunities for improvement and to provide advice as to the advantages and disadvantages of sourcing the operation.

Project Approach

  • SCALA worked with the client to establish its current activities, volumes and costs.
  • From this and site visits a cost performance review was undertaken identifying cost efficiency opportunities.
  • An understanding of the site operating environment and culture was established.
  • SCALA used its extensive knowledge of the 3pl market place to identify the likely implications of outsourcing both from a quantitative and qualitative perspective.
  • SCALA provided a final recommendation as to size of prize, an evaluation of outsourcing and recommended strategy and next steps.
  • Benefits & Results

  • The evaluation identified a significant (> 20%) cost opportunity
  • The evaluation enabled the client to decide its strategy and direction
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