Company

Family owned company and top 5 global player in contract logistics. Provides storage, order picking, value added logistics activities and transport to >200 owned and franchised outlets of an international listed food retailer with a diversity of express stores, hyper- and supermarkets. Starting point of the project was a historical (outsourced), inefficient and scattered structure, characterised by inflexible and unfriendly labour relaties. There is a strong urgency and need for a high efficient logistics backbone as part of a total transformation program for the food retailer.

Situation

The food retailer has the intention to renew and extend, based on partnership, the existing relationship with the logistic service provider. Gwynt regularly worked with and for the logistics service provider, knows the food retail business by heart and is motived and creative to find break-throughs and solutions. The logistics service provider wanted to show their customer, based on data and scenario’s, as objective as possible, to demonstrate potential solutions and their benefits.

Approach

Gwynt started with the design and building of a simulation model in order to calculate a number of set-ups. A large variety of potential scenarios were defined and calculated in warehousing and transport of ambient, chilled and non-food flows. Centra of gravities and scenarios were calculated and compared on criteria like costs, service levels, hours and km’s. Finally an evaluation and comparison of scenarios were executed in much detail and pro’s and con’s were motivated.

Results

In comparison with the base case >8% savings are feasible, only on transport. Even more important a more equal spread of activities and volumes over the locations can be achieved and a set-up can be realised whereby significant efficiencies in warehousing and picking are achievable. The foundation of a step-change in higher product availability and service levels can be realised and a structure is developed to rejuvenate the operations and modernise labour relations.