Case study:

Logistics Network Strategy 2

Multinational Grocery Manufacturer

Background & Brief

Following the acquisition by a German Group of a major UK snacks brand business this organisation appointed SCALA to review their future logistics options and integration with their own manufacturing operations

Project Approach

SCALA have undertaken a detailed strategy review assessing the temporary arrangements set up at the time of the acquisition and future options.  The existing and new business had a total of eight UK manufacturing plants spread across the UK.

SCALA have worked with the proposed potential manufacturing rationalisation options to develop a number of logistics scenarios to enhance these options and ensure manufacturing are not encumbered by logistics restrictions.

The process has involved modelling a range of options and providing practically based costings to enable the financial impacts to be clearly understood together with the risks associated with the changes.

Benefits & Results

Total logistics benefits of over £2m have been identified with the solution also enabling future service improvements to be achieved.

In parallel with this manufacturing will be able to deliver significant benefits from rationalisation and relocation of various product groups.

Final Outcome

SCALA are currently continuing to work with the company to tender the new logistics requirements and to implement the revised strategy.