By taking strategic direction and focus area from the business, we were able to analyse existing data along those lines and feed our findings back to the business. The immediate result of this was that logistics opportunities worth more than AU$14m were identified, representing 0.8% of net revenue, and more than 8% of existing distribution costs.
This involved new approaches to route-to-market being quantified, including the development of a simulation tool for use when negotiating delivery mechanisms with customers. Our strategy also involved quantifying new approaches to Minimum Order Quantities, as well as the working capital impact of old and slow-moving stock, by product and distribution centre.