Artisan Baked Goods Manufacturer
Situation
A private equity firm engaged our consulting services to address a critical supply chain challenge faced by one of their portfolio companies, a leading food manufacturer based in Victoria. The company's primary logistics and warehousing provider had recently gone into liquidation, creating a sudden and urgent need for a comprehensive review. The client sought to not only secure reliable and cost-effective freight and warehousing services but also replicate, if not improve, on the service provided.
Approach
We initiated the project with an in-depth analysis of the client's supply chain requirements, focusing on both full truckload (FTL) and less than truckload (LTL) freight needs, as well as their national warehousing demands. After analysing their CY22 volumes and costs, we created a thorough baseline that detailed their cost components at a lane-by-lane breakdown. To identify potential suppliers, we conducted extensive market research to identify reputable logistics and warehousing companies with the capacity to meet the client's needs. Once a shortlist of vendors was agreed with our client, we contacted and sent out our comprehensive RFP that detailed the client's specific requirements, KPI’s and pricing. We facilitated negotiations between the client and the shortlisted suppliers to ensure favourable terms and conditions. Finally, contractual agreements were established to guarantee service quality and pricing stability over the long term.
Outcome
The supply chain optimisation initiative yielded impressive results for our client, especially due to the challenge of the primary supplier going bankrupt. By securing competitive pricing and optimising their supply chain operations, our client realised substantial cost savings. In total, we achieved more than a 14% reduction in their total supply chain costs, exceeding the client's expectations. The client's supply chain is now better insulated against unforeseen disruptions due to utilising multiple vendors for the network, reducing the vulnerability associated with 1 major supplier.
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