A major food and beverage company turned to aBCD Consulting to revolutionize its supply chain by focusing on an integrated logistics model.
The main objective was to reduce operational costs, improve efficiency, and create a harmonized and flexible system to respond to market dynamics.
The challenge
The company was facing several issues that were compromising the performance of its supply chain:
Uncontrolled stock levels
relative to available space and anticipated costs.
High transportation and distribution costs
resulting from an unoptimized logistics network.
Lack of coordination
between the production plant, central logistics hub, and regional hubs, leading to delays and inefficiencies.
The need to quickly adapt
to fluctuations in demand and market developments.
The solution
aBCD Consulting adopted an approach based on the principles of integrated logistics consulting to address the challenges and build a more effective supply chain:
1. Initial analysis and diagnosis:
In-depth evaluation of logistics flows,
operational capabilities, and existing technologies.
Identification of inefficiencies
and critical points throughout the entire network.
Study of the client's specific needs
to customize solutions.
2. Design of an efficient logistics network:
Reorganization of the logistics network
using advanced simulation tools.
Introduction of consolidation and capacity redistribution strategies
to balance volumes.
Strategic placement of logistics nodes
to optimize transportation flows, inventory distribution, and improve performance toward the market.
3. Analysis and definition of the most suitable logistics outsourcing model:
Based on the design of the optimal network identified, evaluation of different outsourcing models:
- full outsourcing to a single 3pl
- differentiation by sales channel
- differentiation by geographical areas
- differentiation by added value and service complexity
Identification of the ideal supply mix
(by geographical area and by complexity/added value) and the necessary planning requirements for implementation.
4. Change management and training:
Workshops and training for internal staff,
aimed at aligning skills with the new logistics models and dynamics.
Operational support
during the transition to the new logistics model.
5. Monitoring and continuous improvement:
Definition of specific KPIs
to measure the results achieved and ensure the objectives are met.
Implementation of a feedback system
to drive continuous improvements.
Results
The adoption of the proposed solutions represents a radical change in the organizational structures and management dynamics, with a multi-year horizon. The transition is currently ongoing, and the most significant expected results will be realized upon completion of the adoption of the new model. However, the client company is already seeing significant results in more immediate areas:
Significant reduction in overall inventory
thanks to integrated planning that is continuously aligned with sales forecasts.
Reduction in costs related to regional logistics hubs
due to new sizing, constant monitoring of remote inventory levels, and new replenishment policies.
Significant reduction in obsolescence
thanks to proper sizing of inventory per item.
Reduction in transportation costs
through direct assignment of high-cost, low-complexity routes.
aBCD Consulting's integrated logistics consulting is based on close collaboration with the client.
Don't hesitate to contact us for advice and discover how we can help your company optimize its supply chain.
