Logistic Consultancy

Privately held food manufacturer based in the United Kingdom.

The client is a privately held food manufacturer based in the United Kingdom, they required a logistics strategy that would significantly improve the cost and service levels for the client’s grocery and sweet treats divisions by taking a holistic view of the two divisions.

Go Supply Chain carried out centre of gravity analysis to identify the best locations for the new distribution centres and 2 distribution centre options for the grocery and sweet treats divisions. They were then able to present both options to the client, whilst recommending the optimal solution to the client in regard to the costs and service.

Go Supply Chain developed RFQ documentation and managed the tender process to transition the client from the current state to contract award with an operation that reflects the optimal strategy.

From the work completed with Go Supply Chain’s Logistics Consultants, a best in class logistics network was created, which substantially reduces the warehouse and transport costs and will offer opportunities for revenue growth, cost efficiencies and cash generation. From this, a saving of £20m is projected over the next two years.

The modelled logistics strategy was made into a reality, with a forecast of logistics costs from the strategy closely matching RFQ responses and final contract awards.

It was found that a 650,000ft² single NDC would be able to manage the logistics operations for both grocery and sweet treats operations.

The information gathered and presented by Go Supply Chain’s Warehouse Consultants was able to substantially reduce the warehouse and transport costs for the client and offered opportunities for revenue growth, cost efficiencies and cash generation.

Client

  • The client is a privately held food manufacturer based in the United Kingdom.

Requirements

  • To develop a logistics strategy that would significantly improve cost and service levels for the client’s grocery and sweet treats divisions by taking a holistic view of the two divisions.
  • Carry out centre of gravity analysis to identify the best location/s for 1 distribution centre and 2 distribution centre options for the grocery and sweet treats divisions.
  • Present both options, recommending the optimal solution to the client in terms of cost and service.
  • Develop RFQ documentation and manage the tender process to transition the client from the current state to contract award with an operation that reflects the optimal strategy.

Business Benefits

  • Best in class logistics platform that substantially reduces warehouse and transport costs and will offer opportunities for revenue growth, cost efficiencies and cash generation. £20m savings are projected over next two years.
  • On time process that made the modelled logistics strategy a reality, with forecast logistics costs from the strategy closely matching RFQ responses and final contract award.
  • 650,000ft² single NDC that will manage the logistics operations for both grocery and sweet treats operations.

Published by: Go Supply Chain Ltd