In order to respect the confidential nature of the data contained in this case study, we have chosen to omit the company name.
The client was faced with tremendous market and price pressures which led to the Board’s decision to outsource all service areas of the supply chain (including software, hardware, accounting, and logistics). The Head of Global Logistics decided on a global independent concept for all transports and warehousing which led to the selection of our 4PL concept over 3PL service providers.
We have optimised the logistical setup in all of the client’s European subsidiaries, including the execution of 16 predefined projects. The scope consisted of optimising the warehouse and transportation network, as well as accounting, software and hardware integration, which also included re-allocating resources to address weaknesses in the overall supply chain.
Through our Implant Strategy, the client’s logistics department has come under our payroll and management. Using this manpower, and by bringing in our own experts, we now manage all of the client’s European shipping and logistics activities (from delivery notes to customers invoicing), totalling 250,000 tones and over 200,000 deliveries per annum. We now also arrange the client’s Global Request for Quotation (RFQs), choosing only the best service providers for the particular routes. We are, and continue to be, the client’s 4PL expert.
The total business transfer, including implementing the Implant Strategy, has been realised without any negative impact on the daily operational business. We now achieve:
– Cost savings of 22% per year of prior logistics costs
– Return on Investment: 1.43 years