Simply Supply Chain offered to develop a proof of concept that would assimilate all of the UK distribution costs for the two distribution centres and all of their direct customers.
In order to develop our model, we performed a desk-top evaluation of the distribution sites and built the cost engine to mirror the activity from receipt of order to delivery for all of its inbound, warehousing, and customer delivery to its retail customers.
Validating the model against the operational management accounts, we were able to refine the cost attributions to generate a repeatable model within 3 weeks of receiving the first transactional data.
Working with the outlined 4 week time frame, from the initial conversation, the model outputs needed to provide insights into the core drivers behind the extreme variance in costs between the key customers.
Our insights meant the client immediately focused on reducing the handling costs for a range of customers who were at odds with the optimal channel model. The client was able to identify a number of customer behaviour changes required to reduce the cost in line with their peers