This client runs 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.
The client needed to identify the core drivers of cost and to be able to model the options to reduce cost to serve. They also wanted to provide the capability of ensuring 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.
