An international food producer, specializing in tapas and salads, explored options for centralizing its logistics processes.
Challenges and background
After a period of growth through acquisitions, integration between different parts of the company was lacking. This led to limited transparency into logistics costs and their drivers. At the same time, management was working on a business valuation for additional financing, and understanding the efficiency of logistics operations was crucial.
Approach
The project focused on a thorough analysis of the current logistics situation and the development of future scenarios. Key steps included:
- Mapping current logistics processes and costs.
- Creating a simulation model for warehouse and transportation costs.
- Benchmarking costs and performance using a proprietary database.
- Requesting indicative rates from logistics service providers.
- Organize workshops with management to guide decision making.
Results
The research resulted in a clear strategy and concrete insights to optimize logistics processes:
- An integral steering for success: Based on leadership, project management and change management, a future-proof logistics model was proposed.
- Design and implementation of a central organization: The benefits of various acquired entities were brought together into one cohesive logistics system.
- Realistic synergies: A roadmap was developed to cut costs and improve collaboration.
- Preserving crucial cultural elements: During the integration process, careful attention was paid to securing the company’s unique values.
- Revenue Ambition Preconditions: The proposed changes assured that growth targets remain achievable in both the present and the future.
This study not only supported the board in decision-making, but also provided a solid foundation for more efficient and future-proof logistics operations.