40% Savings in Logistics & Distribution Services
The Client
One of the largest companies in the wholesale sector
IndustryWholesaleServicesExpense ReductionCategoryLogistics & Distribution Services
The Result
40%
Savings Rate
Total Annual Spend:
€2,000,000
Total Annual Savings:
€800,000
Thanks to the implementation of a new methodology and a more competitive price framework with new supplier, 40% savings were achieved. Savings refer to the following activities:
- Product receipt, storage and management
- Distribution of products and product returns within Greece
- Inventory relocation from Client warehouse to the provider’s facilities
The Challenge
1
Verallis main objective was to provide Client with cost improvement opportunities, to assist in selecting the best value offers with the “best fit” solutions with compatible providers as well as to implement selected solutions and to monitor the achieved results.
The Method
2
During our process, we found out that in addition to cost improvement, attention must also be paid to achieving significant service level improvements in order to better meet Client needs. In addition, since the Client will be using a Logistics provider for the first time for the entire logistics operations and distribution services, it was very important to create a process simulation. After a thoroughly study of the cost of Logistics and distribution network per Business Unit, we were able to determine the benchmark per Business Unit. The key benchmark for the client was the cost per item picked and handled.Verallis, focused on the development of a detailed RFP, which listed all the parameters that characterize the Logistic Project and can provide the Client with optimal services combined with the lowest cost. Only the largest companies in the market were selected to participate in RFP as well as those that are already performing similar projects.