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%