Leading Canned Goods Manufacturer

canned-goods-contrast

A leading canned goods manufacturer with a complex operation manufacturing product within the UK and Europe and sourcing products from multiple global locations via road, rail and sea.

Their UK distribution operation included closed and open-book sites, and outsourced support services, as well as their own teams.

Requirements

The client needed to determine the difference in the cost to serve their customer base, to identify the core drivers of that cost and to be able to model the options to reduce that cost. As part of this they also wanted to provide a capability to ensure customer buying behaviours conformed to terms (MOQ etc.) and to determine the appropriate discounts for their value-adding or cost-reducing services.

As such, Simply Supply Chain performed a full analysis of all the activities and variables throughout the end-to-end operation, attributing costs to each activity and creating flags to determine when the variable cost attribution rules applied. A validation process allowed full traceability at line-level, so the model reconciled 100% with the operating account costs and yet could be completed within 2-3 hours each month.for their value-adding or cost-reducing services.

Benefits

Activity Modelling

The client was able to compare the monthly cost to serve for each of its 200+ customers in summary and by activity, distributing these reports to key stakeholders automatically and running what-if scenarios.

In-built functionality can further check customer compliance with MOQ and add-value logistics services or highlight errors.

Real Savings

We identified £100k+ of savings through the development process as a result of the findings, and delivered the £200k of efficiency savings targeted from the project, within the first 12 months.
 
A product view has also enabled a source-to-serve cost for each brand, family and sku, to improve life-cycle management

Contact Us

C: +44 (0)845 6522251

E:  info@simply-sc.com