National Supermarket Chain identifies $1.2M in Annual Benefits through Warehouse and Logistics Optimization
AmajorAmerican grocery chain with over 2,500 stores nationwide
$265K
Reduced Transportation Costs
96%
Routing Efficiency
Challenge
The client was experiencing hightransportation costs even thoughtheir route efficiency and truck utilization was low. They wanted to optimize delivery schedules to streamline routes for their different stores while still allowing for cross docking of commodity products.
Discovery
Our team conducted interviews with a team of stakeholders and subject matter experts. Using data provided by the organization as well as visiting the company’s distribution centers, our team was able to implement 8 different pilot tests that gave the client a better understanding of the interactions and dynamics at play.Additional long-term improvement opportunities were identified:
Reduce organizational and transportation costs by identifying efficiency zones and creating complimentary and staggered delivery windows
Process infrastructure creating efficiency metrics and standardizing operating procedures across the organization
Determine a desirable delivery frequency by changing scheduled deliveries to increase the frequency of deliveries and re-organized when stores get their product
Optimizing routingsby giving routers staggered windows to promote a zone-based routing plan
Value Created
Our client realizedimmediate financial benefits as well as several long-term organizational benefits including:
$265K in reduced transportation costs
22% increase in in-store deliveries & a push towards a Just-in-Time supply chain
32% increase in routing efficiency to 96%
57% decrease in average mileage between stops
Reduce transportation costs and increase deliveries