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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Capturing Manufacturing and Logistics Cost Savings Opportunities While Maintaining High Customer Service Levels at Premium Baked Goods Manufacturer
Lowered nationwide logistics/transportation costs via reductions in emergency shipments and outsourcing/consolidating of the carrier fleet and warehouses to a single, third-party logistics provider (3PL). Set lowest-cost freight allocation system targets, defined proposal criteria, and created RFQ. Actual savings exceeded projections by 15% in the first year ($6.9MM EBITDA impact), with maintenance of 99+% fill rate.
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