CASE STUDY

Supply Chain Optimization Helped a German Retail Giant Reduce Logistics Management Costs by 27%

May 21, 2021

Engagement Summary

With the global pandemic hitting the retail industry with new challenges and bottlenecks, retail players urgently need to optimize their supply chains to meet with volatile demand. The primary goal of supply chain optimization is to deliver quality products to customers at the lowest-possible cost and increase profit margins to the maximum-possible value. In order to meet this primary goal, supply chain managers must balance the costs of product manufacturing, inventory management and replenishment, transportation, fulfillment and customer service expectations. A retail industry giant approached and collaborated with Quantzig to leverage its logistics management and supply chain optimization solutions to optimize their supply chain network and reduce delays in product delivery.


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The client

The client is a German multinational retailer with headquarters in Berlin, Germany, specializing in clothing, home products, and food products.  Apart from over 700 stores across Germany, the client also has a presence in Asia and Europe. 

Business Challenge

The client wanted to leverage data and automation to improve their existing logistics network to reduce delays in product delivery, improve production planning accuracy, and save on additional costs incurred due to the delays. The primary business challenges of this retail client were –

  1. Reduce costly errors – The existing logistics and supply chain network lacked automation and frequently ran into errors. The client was keen to stop these costly errors and wanted to leverage Quantzig’s logistic management and supply chain optimization solutions.
  2. Access real-time logistics data – The client was lacking access to real-time data, which was resulting in delayed decision making.

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Solution Offered

Quantzig’s logistics management and supply chain optimization solutions helped the client gain real-time data on supplier performance. On collaborating with Quantzig, this client embarked on a transformation journey and witnessed increased visibility of their supply chain network. The real-time access to data helped the client identify the best and worst-performing suppliers. Towards the end of this project, the client addressed the bottlenecks of their logistics management process.

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Business Outcomes

Armed with data-driven insights, the client was able to take the necessary actions to initiate remodeling of their logistics network. Equipped with a data-driven logistics management process and route optimization plan, the client addressed the bottlenecks in their processes and successfully eradicated costly errors. Automation in supply chain network helped them comply with industry standards and government regulations through standardizing pricing, products, and suppliers.

The critical business outcomes of the collaboration were –

  • Drove continuous process improvements with automation
  • Reduced logistics management costs by 27% in one quarter
  • Derived new logistics route that helped in reducing delivery delays

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