Business Challenge
Improving distribution revenue by schedule optimization and partner analysis
A global warehousing and cold storage company wanted to optimize its 3rd party logistics providers’ distributions schedules, to eliminate unwanted costs and also identify the best partners.
Situation: Understanding the partner schedule and spend
The client had a global network of third party distribution partners and wanted to analyze the schedule and spend for each partner, in order to quantify profitability from each schedule, evaluate profitability of each distribution and delivery schedule, and identify the best logistics partners.
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Solution
Spend analysis, supplier evaluation and vendor scorecard development
We churned the client’s global distribution data and spend data, performed logistics optimization, schedule analytics, and spend analytics to create a partner scorecard, quantify the performance of each schedule, map distribution spending to strategic logistics requirements, and recommend the best possible options for to the client.
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Impact
USD 5 million reduction in procurement spend
Based on our insights, the client identified the hidden costs and unnecessary wait times across various schedules, and developed strategies to eliminate them. The client also identified its most cost-effective partners and developed long term contracts with them. These enabled them to generate 15% higher revenue over the next year.