Case Study – Circa 2010-2020 Timeframe

Cost Reduction- Success Story

OPERATIONAL NETWORK RATIONALISATION

Cost Savings Initiatives

Commodity Boom

Investments in New capital types of equipment.

Lower costs structure

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Realistic fact-based cost reduction targets – with a well-reasoned approach to cost reduction; Network cost reduction of $2.65 M.

Global Supply Chain Group case studies illustrate past client problems and how they were solved using supply chain thinking. All client identifying information is disguised. To protect client confidentiality, only details that asssist in illustrating the situation, the key problems and the solution are given. The intent is to discuss only those details that readers could find useful for their situation, and apply in read world problem solving.

PROJECT DETAILS

  • Client – Australian top 3
  • Industry – Food and industrial products
  • Geography – Australia, New Zealand and Asia
  • SCM Specialty – SC cost reduction
operational network rationalisation our journey

POPULAR CASE STUDY

CLIENT SITUATION

  • The client’s relationship with the 3PL service provider was fraught with overcharging and strategic information hoarding by 3PL.
  • The supply chain costs were too high and client personnel was in dark about many of the charges.
  • Inventories were too high, while other products suffered from stockouts.
The Essence Of Business Transformation

METHODOLOGY

Company has 122 storing locations in Australia, of these 63 have stock of more then $xxx M.

supply chain diagram
Large scale cost saving

RESULTS

Significant reduction in warehousing costs to achieve the target of a 20% reduction in supply chain costs by FY20xx.

supply chain result diagram
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