A company operating in the wine sector, part of a global beverage holding, set out to improve the efficiency of its national distribution network, aiming to enhance on-time, in-full delivery (OTIF) and reduce operational costs.
The challenge
The challenge stemmed from the complexity of the existing network, characterized by:
Geographical concentration
of main distribution nodes.
Dispersed delivery destinations,
with highly polarized volume absorption in specific cities/regions.
Significant delays
in part of the deliveries, with actual performance at 82.7% versus a target of 96%.
High costs
High inventory holding and transportation costs.
The solution
aBCD Consulting developed a three-phase project:
1. Assessment:
a detailed analysis of distribution flows and the characteristics of existing nodes, assessing:
Actual delivery times
compared to contractual agreements.
Geographic distribution
and concentration of volumes.
Operational inefficiencies
and bottlenecks.
2. Strategic Network Design:
Redesign of distribution nodes:
the proposed configuration identified three strategic hubs to optimally cover the national territory. This setup enabled:
- A reduction in average delivery times.
- Improved punctuality for critical shipments.
Inventory management optimization:
minimization of stock duplication and reorganization of replenishment flows.
Implementation:
Advanced technologies:
introduction of systems for route optimization and process automation.
Staff training:
support in managing new procedures to ensure smooth adoption and sustainable results.
KPI system focused on OTIF and logistics cost analysis:
implemented to measure the impact of the solutions and identify further areas for improvement.
Results
Thanks to the intervention of aBCD Consulting, the company achieved:
Increased delivery punctuality:
OTIF performance rose from 82.7% to over 90%, with prospects for further improvement.
Reduction in operational costs:
targeted optimizations led to significant savings in transportation and inventory management costs.
Improved customer satisfaction:
more reliable and timely service enhanced the brand’s market perception.
With its distribution network consulting services,
aBCD Consulting works alongside companies to strengthen their distribution networks and achieve efficient, optimized coverage.
