Costs savings in company with high seasonal influences

April 6, 2016 610

NestleDescription
ESI Polska is a division of Nestlé Waters and distributes mineral waters and other beverages within Poland.

Opportunities
As a result of changing customer’s strategies, ESI Polska questioned how to adapt their distribution network in order to meet customer requirements and reduce logistics costs. The high seasonal influences experienced by the company were considered an important issue for the development of the conceptual design. ESI Polska wanted to identify customer revenue with the order fulfillment costs.

Solution

  • Definition of customer service metrics
  • Profitability analysis based on the ABC costing methodology
  • Optimization of distribution structure through computer simulation. Solution towards centralization of distribution centers proved out to be the best solution for their business
  • Identification of quick-wins in logistics costs: transfer and consolidation of distribution channels.

Benefits

  • Customer profitability analysis
  • Significant cost reduction in warehousing & transport costs
  • Optimal distribution network meeting customer requirements
  • Quick-wins for savings in distribution
  • Implementation plan.
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