Catering Supplies Company

Logistics Strategy Development for the South of England

Distribution Strategy

Logistics consultants from Go Supply Chain were engaged by this leading supplier to the catering industry to develop the warehouse and distribution strategy for the South of England, and to review the fleet requirements across the UK.

The company had recently opened a new National Distribution Centre and was looking to review its strategy in the South of England, with a view to opening a new, larger RDC to service this area.

Logistics data analysis

We held a data workshop and obtained detailed order-line data from the client’s business systems for a sample period, along with a product master file.

Our logistics consultants analysed the data to produce the inputs for the centre of gravity, distribution network optimisation and inventory optimisation models.

Inventory optimisation consultants

We built a SKU level inventory model, with the aim of determining correct inventory levels based on service level targets. Using this model, we were able to define inventory holding requirements and for a variety of distribution network strategy options, including which SKUs to hold regionally or hold back at the National Distribution Centre.

Warehouse design consultants

Using the output of the inventory modelling, we calculated the required warehouse sizing and headcount for the new distribution centre.

Logistics network design

We undertook centre of gravity modelling to define the optimal location for the RDC and for potential transport out-bases.

Transport modelling and fleet review

Using specialist transport routing and scheduling software, our logistics consultants first constructed a validated base case, and then undertook a routing and scheduling exercise based on variations of the new network structure e.g. testing assumptions around depot locations, out-bases and vehicle sizes. We determined the required fleet resource to service customers in the new network structure.

“The new distribution network is simpler, faster and lower cost.”

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Client

  • Leading supplier to the HORECA sector in the UK

Requirements

  • Validate single RDC strategy for the South
  • Determine the optimal location, potential locations for out-bases, SKUs, inventory holding, sizing and headcount for the new warehouse
  • Undertake a routing and scheduling exercise and review the fleet numbers and vehicle types for the new transport network

Business Benefits

  • Simpler, faster and lower cost logistics strategy
  • Optimal inventory holding and location to balance service requirements against cost
  • Reduced cost transport operation through routing and scheduling optimisation and fleet mix analysis
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Supply chain and Logistics Specialists highly experienced in all aspects of Supply Chain and Logistics Operations,
Distribution Network Strategy, Warehousing Operations, e-commerce Logistics and Warehouse and Distribution Centre Design.