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SCALA CASE STUDY

Supply Chain “Cost Release Programme”

Global Quick Service Restaurant

Background & Brief

The client, a world leading Quick Service Restaurant, engaged SCALA to carry out a review of its UK and Ireland Supply Chain. The client has four Supply Chain centres in the UK and Ireland and in-house Logistics distributing to 1,100 stores three times a week. SCALA were engaged to review the client’s existing supply chain network, assess the client’s transformation programme, create a cost release programme and benchmark its operations against other businesses operating in the quick service restaurant sector.

Project Approach

  • Gain understanding of current business and growth projections
  • Visit Supply Chain centres to understand current processes (sku range, stock holding, replenishment etc..)
  • Data collections and analysis
  • Gain detailed understanding of existing transformation programme and projects
  • Logistics modelling to assess optimal location and size and role of a 5th supply chain centre.
  • Prioritise projects and develop other opportunities to create a cost release programme
  • Benchmark the client’s UK supply Chain against others in the QSR sector
  • Produce detailed report containing conclusions and recommendations
  • Provide executive summary for main board

    • Benefits & Results

    A clear and detailed report was produced for the Company’s UK Board containing an overall assessment of the existing Supply Chain Transformation programme. The report contained a cost release programme prioritising some existing projects and flagging issues with others. The report contained recommendations to extend the existing network to meet business growth and deliver the optimal return. The report also contained a benchmark vs others in the QSR sector and assessed the pros and cons of remaining an in-house logistics model.

    Final Outcome

    SCALA presented an executive summary to the UK board containing a cost release programme to reduce logistics costs by over £5m over a 2 year period, a recommendation to build a fifth supply chain centre, an external benchmark vs others in the QSR sector and a firm recommendation the business should continue with an in-house logistics operation.
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