Distribution & Logistics
Improving Cost-to-serve at Premium Baked Goods Company
Created a new logistics strategy, including implementing a new DSD network and delivery process, developing a new transportation and warehousing strategy, and re-balancing production among plants. Over 75% of the $2.5MM in savings (from a cost base of $12MM) highlighted in the strategy was saved in the first year of implementation.
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Cleaning Up Distribution as a First Step in Establishing a Growth-supporting Distribution Platform at National Seafood Company
Conducted a diagnostic to reduce distribution costs as a part of an effort to integrate the distribution systems of two companies by identifying and sizing cost levers with savings benefits (quick hits, process changes, and cultural changes). Targeted cost savings of $1.5 to 2MM on a base of $7MM, of which $1MM are estimated to be achieved by quick hits alone.
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Unlocking Truck and Parcel Freight Savings at Portfolio Companies of Middle-market Private Equity Firm Freight
Created fact base for leveraging $11MM of freight spend across 3 portfolio companies of a middle-market private equity firm. Facilitated communication between management of portfolio companies to understand service requirements and the manner in which the individual portfolio companies would conduct freight negotiations. Led RFP process and analyzed new bids based on 2 years of historical freight spend. Created an evaluation matrix based on both cost and service to facilitate vendor selection. Purchasing consolidation led to $1.2MM in savings in the first year and improved freight service.
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Freight Cost Opportunity Diagnostic and Savings Capture at at Leading Fashion Accessory Importer
Analyzed air freight cost from Asia to identify $3-5MM (32-49%) in cost reduction opportunities from: (1) tighter management of air shipments (including invoice auditing, formal RFP process to find a new freight forwarder, and reduced rush shipments of products and components); and (2) selective migration to container shipments. Helped client capture the opportunities, including auditing past freight bills to discover 13% chargeable weight discrepancy and executing the RFP process to find a new freight forwarder, resulting in a 31% reduction in freight cost. As per our recommendation, Client hired a VP of supply chain to spearhead capture of further savings via continued development of robust processes and migration of increasing amount of freight to sea. A year after Gotham left, FashionCo had dramatically lowered its inbound freight costs and migrated a significant portion of shipments to containers.
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Rapid Inventory and Supply Chain Cost Structure Diagnostic at Niche Apparel Producer
Conducted an inventory and cost structure diagnostic and created a plan for capture of opportunities at a recently acquired private equity portfolio company. Identified $11+MM in inventory reduction, $1.2–1.9+MM in overhead expense reduction, and $0.4–1.2MM in freight cost reduction opportunities.
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Deciphering and Controlling Outsourced Distribution Cost Structures at Medical Products Ecommerce Retailer
Modeled the warehouse, outbound freight, inventory, and inbound freight cost structures of a 3rd-party logistics company in the midst of contract renegotiations and a move to a new warehouse. Identified $1.3MM in financial exposure and weaknesses in contracted outbound freight pricing which drove operational instability, resulting in a 22% reduction in the acquisition price.
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