Business targets
To look at the current radial distribution network and provide an implementable fixed routing schedule using the nearest / appropriate depot.
- To reduce inventory by de-duplicating SKUs (less stocking / supply points) and implement group stock optimisation.
Our approach
- Site visits and workshop sessions with key supply chain and logistics team to understand product flows, volumes, operational challenges & planned. business changes. Final project brief and deliverables agreed.
- Data validation and business understanding post data receipt to ensure interpretation of data is correct.
- Data analysis to interpret opportunities.
- High level modelling using Paragon to quantify costs and benefits.
Outcome
- Radial Transport Optimisation (Phase 1): Implement fixed routing schedule with discrete service areas from depots – Operating benefit c. £4m-6m pa.
- Inventory Reduction / Reduced Network: Centralisation of slow-moving SKUs to single DC and stock optimisation. Final benefit once fully implemented c. £40m – £50m in working capital reduction. Opex Benefit of £1m to £2m pa from network rationalisation.
£4m-6m p.a. Operating benefit
£40m - £50m working capital reduction
£1m to £2m Opex Benefit p.a.
from network rationalisation
