Originally Published on: Quantzig How we helped a leading material spirits manufacturer effectively plan the distribution through dynamic targeting
Client: This case study delves into how a prominent material spirits manufacturer effectively optimized their distribution planning, reducing costs while ensuring efficient and timely product delivery.
Challenges: The manufacturer faced obstacles related to inefficient distribution planning and escalating transportation costs. Challenges included suboptimal route planning, limited visibility into the distribution network, and inadequate resources for effective analysis and optimization.
Solutions: Utilizing advanced analytics, Quantzig implemented distribution cost optimization strategies to align production schedules with distribution plans. This involved optimizing delivery routes, identifying load consolidation opportunities, and implementing a real-time tracking system for dynamic targeting and end-to-end visibility.
Impact Delivered: The initiatives led to a 29% reduction in spike order costs, a 24% decrease in costs associated with third-party deliveries, and near real-time visibility into the distribution process.
Industry Overview: The European spirits manufacturing industry is characterized by tradition, innovation, and stringent quality standards. Sustainability and environmental concerns are increasingly important, driving the adoption of eco-friendly practices.
About the Client: Our client, a European spirits manufacturer with approximately $1 billion in revenue, employed a hybrid strategy utilizing both their fleet and 3PL vendors for distribution. However, existing allocation practices led to costly leaks and hindered profitability.
Challenges Faced: The client's demand management system lacked forecasting capabilities, resulting in suboptimal order consolidation and palleting. Additionally, their supply planning approach was outdated, failing to capture the dynamic nature of operations and leading to inefficiencies.
Solutions Implemented: Quantzig developed a comprehensive demand management and fleet utilization system, incorporating order forecasts to optimize resource allocation. Dynamic order management and reverse logistics systems enhanced efficiencies in order consolidation, palleting, and delivery prioritization. Additionally, a comparative platform facilitated informed decisions between using the client's fleet or engaging 3PL providers.
