Cost Optimization in Logistics
A famous case study demonstrates that Wall-Mart's leading position in the retail industry is due as much to its optimized supply chain costs as it is due to its core business of buying and selling goods. Optimizing your logistics and transportation costs is often not a plus, but a must. In certain industries, it is the difference between break-even and profit. In economic downturns, it may be your ticket to survival.
SCMO advisors are experts in logistics, transportation, and supply chain management and assist you to optimize your costs in a balanced way through benchmarking, due diligence, tender management, supply chain sustainability, logistics reorganization and more. Unlike traditional cost killers, we always respect the minimum safe margin of your subcontractors, so as to make sure they still serve you in periods of hardship.
The following case study demonstrates how SCMO approach has been successfully applied to client issues.
One of our customers was so satisfied with the savings we helped him to generate with international transportation that he asked us to help optimize the costs of his regional European logistics & distribution. We were able to evaluate possible savings thanks to our benchmarking expertise. We helped the company reorganize its 5 logistics platforms, which resulted in optimized costs savings of EUR 2 million. We also put to tender its 50,000 CBM trucking, which resulted in savings of up to EUR 1 million, and an improved quality of service with some better long term partners.