Our data analysis expertise enabled a global FMCG company to reduce costs by making its supply chain more efficient.
Our customer - a global fast moving consumer goods (FMCG) company supplying supermarkets and retailers across Australia - was reviewing its supply chains ahead of a major contract review. They wanted us to identify and address any operational issues, and seek further opportunities for improvement.
Detailed quantitative analysis by our dedicated supply chain solutions team focused on what it cost our customer to service its own customers. We recommended the savings that could be achieved through planning and loading improvements, including improved vehicle use and consolidating shipments. We segmented our customer’s shipment data, analysed their delivery locations, and calculated key costs such as freight consolidation options and possible rates changes.
The end result provided our customer with intelligence that enabled it to make decisions based on the cost-to-serve its own major customers.
Key findings included:
- An average 20 per cent difference in cost-per-kilogram for deliveries to the two major grocery retailers
- 2.5 per cent cost savings through improved ordering patterns and the creation of single FTL consignments per day to the same destination
- 7 per cent cost savings due to creating loads by consolidating freight across multiple consecutive days for the same destination.