A leading company in the food sector, specializing in confectionery products, was facing significant challenges in managing its logistics and distribution network.
The challenge
The company faced issues related to:
Lack of transparency in logistics costs:
difficulty in understanding and verifying the charges from service providers.
Inadequate supplier performance:
frequent delays and operational inefficiencies that compromised delivery timeliness and customer satisfaction.
High costs:
an unjustified increase in transportation and distribution expenses.
The solution
aBCD Consulting developed the project in three phases:
1. Cost and performance analysis:
Detailed review of contracts and invoices
from logistics providers to identify discrepancies and inefficiencies.
Verification of actual costs
against signed contracts.
Evaluation of supplier operational performance
against SLAs (Service Level Agreements).
2. Strategic redefinition:
creation and management of a tender process to evaluate different providers and select new logistics partners. This process allowed:
Identifying suppliers
Identifying more reliable and competitive suppliers in the market.
Renegotiating rates
Renegotiating more favorable rates and contractual terms.
3. Implementation and transition:
Managing the transition phase to new suppliers,
ensuring operational continuity.
Introducing cost and performance monitoring systems
to ensure the sustainability of the adopted solutions.
Finally, a KPI system, focused on OTIF and logistics cost analysis, was introduced to measure the impact of the implemented solutions and identify further areas for improvement.
Results
Thanks to the intervention of aBCD Consulting, the company achieved:
Reduction in logistics costs:
a 18% decrease in overall expenses thanks to the selection of more competitive providers.
Improvement in performance:
the introduction of new suppliers increased delivery punctuality from 78% to 90%.
Cost transparency:
the adoption of monitoring tools allowed for better control of logistics expenses, preventing future discrepancies.
With our support, every manufacturing company can enhance the efficiency of its distribution network, leading to reduced costs and increased customer satisfaction.