Retail company reduces its logistics costs by a third after consultancy carried out by ILOS
A retail chain with a strong regional presence hired ILOS looking for help to remodel its logistics network and review its transport strategy. The company had its supply operations concentrated in a low-attractive location, but feared that a change would lead to a drop in product quality.
A complete mapping of its operations was carried out by the ILOS team and a change in the transport contracting model was recommended, starting to operate with an outsourced fleet. There was also a change in logistics flows, with the consolidation of operations in two DCs. The sizing of the DCs necessary to support the operation was also part of the solution presented.
The company implemented the recommendations, which included the implementation of a new CD.
The result was a reduction of almost a third of its proportional logistics cost, in addition to an 11% increase in compliance with established SLAs. quality index did not change and the new operation supported a change of focus to e-commerce growth due to the pandemic. The new operation allowed the company to reach new markets, with expansion in its physical and digital channels.
If your company also has opportunities to gain efficiency in logistics operations, ILOS can help you! Tell us about your needs in the form below and one of our experts will contact you!
project type
- Optimization of the logistics network
- transport strategy
Segment
- Retail
32% cost reduction
logistics in retail company
Challenge
A large regional retail chain wanted to review its logistics and transport network strategy, but was afraid that changes would impact the quality of its products.
ILOS solution
ILOS recommended the consolidation of operations into two DCs, in addition to changing the delivery management model, which began to operate with the use of an outsourced fleet.
Results
- 32% reduction in proportional logistics costs
- 11% increase in SLA compliance
