Multi-faceted approach to upstream logistics improvement
Our client is a $400m building products manufacturer with freight in scope of $15.7m. Prological conducted a wide ranging review of the Upstream logistics freight network to identify opportunities for cost optimisation through:
- equipment design
- increased trailer utilization and minimising dead running
- coordinated transport planning third-party solutions.
Redesigning the network
Our team implemented the following approach to test and subsequently confirm a substantial reduction in cost to serve:
- Develop a comprehensive understanding of the current outbound supply chain.
- Conduct a feasibility freight market assessment to confirm the thesis is achievable.
- Lead a loading and restraint feasibility study to assess the development of sustainable processes for the safe and secure loading, unloading and restraint of fully loaded product frames.
- Assess truck payload to identify how many tonnes of product could be loaded under the various models.
- Document the detailed design specification in preparation to engagement and execution.
Compelling improvements
Based on the detailed assessment of key activities we identified approximately $3m of savings per annum and other opportunities.
On application of the initial processes and recommendations, the project delivered between $3.4m and $3.6m of savings.
