Background
The company was seeking to understand the cost to service their customer base and identify areas of opportunity to reduce cost.
Challenge
- Understand the total cost of serving customers and the total delivered cost of each product by customer
- Highlight the impact of supply chain and other business process costs on the net profitability of sales
- Deliver margin improvement recommendations for unprofitable customers and reduce high-cost processes / increase profitability
Key Project Outcomes
- Inventory cost reduction opportunities totalling $7.7m
- Restructure of distribution model with DC-DC replenishment for major account customers
- Order and freight consolidation savings of >10%