Our supply chain solutions team undertook a freight delivery analysis to help an FMCG customer deliver temperature-controlled goods around Australia more efficiently.
Our customer - a global Fast Moving Consumer Goods (FMCG) manufacturer - wanted to improve the Australian distribution of its temperature-controlled products. Its existing operations involved shipping many small orders and part-loads because products were being ordered from two separate warehouses. We were asked to undertake an analysis of their network with a view to reducing the volume of uncoordinated deliveries and better utilising their fleet of trucks.
Our specialised supply chain solutions team collected and segmented customer delivery data, looking at delivery inefficiencies and the design of a new freight network that included new delivery schedules. Our investigation looked at introducing a fully-utilised linehaul service between the two main warehouses in Sydney and Melbourne. We also proposed improvements to delivery schedules such as consolidating product ranges. The quantitative impacts of all of our proposed changes, such as costs, were examined by our team in detail.
The detailed supply chain analysis and recommendations we provided indicated to our customer that a focus on improving utilisation and delivery efficiency could result in significant savings. These included a decrease of more than 25 per cent in the total number of deliveries and an increase of over 40 per cent in the percentage of total pallet spaces delivered as Full Truck Loads when product ranges were consolidated and delivery schedules adjusted.
We also provided the customer with a delivery data set and key statistics to help them with any future business cases and costing activities related to the distribution network.
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