Distribution Network Review

PZ Cussons

As a leading manufacturer of branded products across the UK, Europe, USA and Africa, PZ Cussons understandably has a vast supply chain network at their disposal.

They challenged us to review their network of 5 key factories across Europe and the Far East responsible for supplying their 3 distribution centres in the UK, for two autonomously run business units.

Requirements

Similarly to our network strategy development with Heinz, we approached PZ Cussons with a five point plan to carry out an efficient network review:

Review the logistics network structure to determine the optimal solution for the two business units, reflecting their different product and customer needs (one supplies core grocery and the other chemists and salons)
Develop an activity based model that would capture and compare the logistics costs across the different channels, including e-commerce and inbound costs from Asia and Europe
Determine the optimal number and location of DC’s for current and future potential supply scenarios
Create a ‘road map’, reflecting current contract term dates and proposed warehouse and system changes required to move towards a lower cost DC network, that would be able to deliver business growth
Establish quick wins able to be realised prior to any network changes

Benefits

Sustainable Improvement

Within 2 years the company has been able to combine its storage and distribution requirements in a single location, deploying common ERP systems that can still satisfy its diverse omni-channel requirements and e-commerce services.

Savings & Cost Reductions

GSI Benchmarking identified a 15% transport savings potential, which was achieved within 12 weeks of the project starting. Further targeted savings of a 20% reduction in warehouse costs, and a 10% reduction in transport costs for one business unit were also identified.

Testimonial

"Simply Supply Chain’s use of the Gold Standard allowed for an extremely clear analysis of the opportunities within our network. They did an excellent job of breaking down some complex (and often incomplete) data to identify a clear course of action and to point out a series of quick wins the group were able to take advantage of."

Alan Sansome | Europe Supply Chain Director | PZ Cussons