Health and Beauty distributor
Situation
An ASX-listed Cosmetics and wellness product distributor approached us following the divestment of one of their brands from their portfolio, wanting to remodel their current operating model to facilitate a more efficient distribution network. Their operating model was ‘direct-to-pharmacy’, which involved high-cost unit picks high-cost carton deliveries to individual pharmacies across Australia. This was misaligned with their long-term expansion plans and required significant manpower and expenditure to manage. We were engaged to remodel their warehouse operations & national freight network and improve their efficiency & bottom-line results.
Approach
We undertook a meticulous diagnostic process to understand the bottlenecks and inefficiencies plaguing our client’s current operational model through several site visits, in-depth conversations with relevant stakeholders, and detailed analysis of their inbound, picking-packing, and outbound data.
We modelled existing volumes and built several scenarios that moved away from unit picks & carton deliveries opt pharmacy to carton picks and pallet deliveries to be pharmaceutical wholesalers and grocery DCs, reinventing our client’s delivery network.
We then ran a tender process to identify and sourced the best sited 3PL provider and freight vendors to execute on the new operating model.
Outcome
As a result of the comprehensive network re-design, we were able to facilitate the transition of our client’s distribution system to a wholesaler network, reducing delivery costs by 6x.
Through our data-driven yet practical and hands on approach, we helped our client successfully navigate this important change and deliver much a improved profitability outcome.
At Highbury & Co we offer a clear alternative to organisations seeking genuine specialist expertise.
Contact us to explore how we can help your organisation.