Consolidation of the supply chain network and improved efficiencies lead to overall cost reductions of 62% for this consumer packaged goods company.

As a result of multiple acquisitions our client’s distribution infrastructure had grown substantially and servicing multiple customer channels had become complex and inefficient. A new supply chain network strategy was needed.

Our client was experiencing substantial growth however without a fundamental change in the supply chain inefficiencies and costs were increasing along with inventories. 

Logiworx developed and modelled various supply chain network strategies, evaluating the impact on service lead-times, inventory holdings, warehouse and freight costs. After extensive consultation with the business the option to centralise to a single site warehouse operation was chosen. Freight services were segmented and tendered successfully delivering substantial savings. The business also revised policies in relation to customer order quantities further increasing efficiencies and reducing costs. Logiworx worked with the client during the facility design and build and project managed the implementation of new freight arrangements.

Over a period of substantial growth our client achieved a 62% reduction in supply chain costs. Consolidation of inventory holdings released valuable working capital and increased levels of control. Centralisation of the warehouse lead to standardisation of processes and to further efficiencies through the application of new picking technology.