Logistics Management Solutions Helped a German Toy Retailer to Reduce Logistics Costs by 23% | Success Story

Oct 15, 2019

About the Client

The client is a leading German multinational toy, games, and sporting goods manufacturer and retailer who is in business for over two decades. While the client’s central manufacturing unit is in Germany, it’s sales and marketing operations were spread across the globe, making it challenging to track and monitor the logistics flow.

The Business Challenge

With the retail sector booming globally, automation has become an important aspect of efficient warehouse and logistics management. The fast-growing retail scenario, growing requirement for newer technologies, and the lack of advanced logistics management capabilities prevented valuable synergy effects. Consequently, the client’s logistics operations and logistics management spend increased significantly. This proved to be a major challenge that hindered the client’s logistics and warehouse operations and they were looking at leveraging advanced analytics to decrease costs and improve their approach to logistics management.

The client wanted to leverage Quantzig’s cutting-edge logistics analytics solutions and proven methodologies to design and implement the most cost-efficient logistics management system while meeting all the SLA’s. The company’s goal was to implement an advanced logistics management framework that would help them develop a more variable business model while also providing increased visibility across cargo flows and warehouse operations.

The devised framework helped address most of the client’s challenges which spanned three core areas including:

  • A decentralized logistics management system
  • Inconsistent processes and operational standards
  • High logistics operating spend (LOS) and logistics management spend (LMS)

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Solution Offered and Value Delivered

To help the client tackle their logistics challenges we integrated an advanced analytics-driven framework to centrally manage all their logistics and warehouse operations using interactive dashboards. Our experts also proposed a set of correlated, analytics-driven services from our comprehensive portfolio of supply chain analytics solutions. Backed with a robust logistics management framework the client was empowered to tackle their primary challenge – logistics management.

Quantzig used its three-pronged data-driven supply chain analytics approach, which is a combination of logistics management, warehouse optimization, and supply chain spend optimization to help the client tackle their challenges.

Phase 1

In the first phase of the engagement, our analytics experts conducted a rigorous internal analysis of the client’s supply chain processes. The analysis helped uncover vulnerabilities in visibility across the inbound supply chain costs as well as logistics performances and service quality.

Phase 2

The second phase focused on creating a lean, agile and demand-driven supply chain. Our logistics management services were tailored to meet the client’s logistics management challenges.

Phase 3

The final phase of this engagement led to the automation of the client’s logistics and warehouse processes, enabling them to optimize logistics spend and drive efficiency across the value chain.

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Business Outcome

Quantzig’s analytics solutions enabled the client to tackle challenges around logistics management by implementing corrective actions and offering a holistic view of their supply chain operations. The logistics management framework enabled the client to drive positive business outcomes by skillfully tackling challenges in the current logistics management processes. Moreover, our services exceeded the client’s expectations and resulted in a 23% reduction in logistics and supply chain costs.

The solutions offered also enabled the client to:

  • Optimize inbound and outbound logistics flows
  • Centralize data management and reporting

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