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Differentiate distribution networks per product market channel

April 06, 2016 2358 Views

Nestlegfgl_c30m9y80 [Converted]Description
Nestlé Purina PetCare Company is a leader in the pet products industry, dedicated to improving the lives of cats and dogs through quality nutrition and care. Nestlé Purina was formed when Friskies PetCare Company and Ralston Purina merged in December 2001. Nestlé Purina PetCare owns several manufacturing facilities and numerous warehouses in Europe.

Opportunities
Friskies European Logistics team was committed to improve their distribution in terms of customer service and costs for the Benelux countries and Germany.

Solution
Groenewout evaluated multiple distribution network concepts. A benchmark proved to Nestle that particular contracts for warehousing were too expensive. As a result Groenewout supported Nestle in the the process of selecting a new logistics service provider through an RFP procedure and the development and negotiation of a new service level agreement.

Benefits
The selected service provider proposed:

  • 10+% Cost reduction in German warehouse costs
  • Increased quality and flexibility

Definition of future opportunities as creating overlap of articles between countries, product rationalization and changes in product sourcing that can reduce the annual logistics costs significantly.