Case study:

Logistics Synergy Review

Major Grocery Group

Background & Brief

This client comprised a consolidated group of grocery manufacturers.  Each company within the group was managed autonomously but the group wished to review the potential for logistics synergies.

Project Approach

A SCALA team worked very closely with a Steering Group representing each of the businesses.  Key stages in the project included:

  • Benchmarking current activities
  • Identifying the opportunities versus “Best Practice”
  • Modelling the optimum solution
  • Assessing the barriers to achievement

Benefits & Results

The review provided a quantitative assessment of the development options and delivered:

  • Quantification of the “Big Fat Hairy Audacious Goal” – equivalent to a 30% logistic saving
  • A logistics vision with a roadmap to deliver cost benefits of 18%
  • The ability to provide significant customer service enablers

This quantified vision enabled the group to make progress towards corporate synergy despite a wide range of barriers, current contractual requirements, current “stranded costs” and differing business cultures within the group.

Final Outcome

the company agreed the vision and chose a controlled and relatively risk-free development roadmap based on individual companies taking their own decisions.