Transport to Store Optimisation

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Project Sponsor: Supply Chain Director

Client:

Leading UK Health & Wellbeing Retailer

Category:

Logistics Consulting

11 July 2021

As part of a complete supply chain development project to ensure the business is fit for future growth, we modelled in detail the opportunities to improve delivery fleet efficiency and reduce in store inventory.

THE CHALLENGE

Instore inventory levels sub-optimal due to store order and delivery replenishment frequency
Four different promotional weekly cycles driving inefficient fixed delivery schedules
Daily & weekly volume fluctuations negatively impact both the warehouse & transport operations, resulting in a significantly under utilised of delivery fleet
Delivery windows constrained by time

OUR APPROACH

Utilised Paragon to model a variety of different scenarios of delivery frequency / different time slots / network options / outsourcing
Full transport modelling and costing for each option
Determine optimal delivery solution(s), delivery frequency and create value curves
Offer a different delivery method (totes) as a partial or total solution for each store
Balance territorial profile utilising multiple out-bases

CUSTOMER BENEFITS

Greater service level offering potentially seven days a week delivery for out of stock and replenishment lines
Implementation of dynamic planning using Paragon to create immediate transport efficiency and significant cost reduction
Potential to move from day one ordering for day three delivery, to day one ordering for day two delivery – significant benefits in right stock, right place, right time
More advanced / improved transport planning process
Reduction in operational sites, fleet & resource