Towards a cost-efficient and sustainable supply chain

The challenge

Fast-growing consumer industry

They were faced with the challenge of optimising supply chain/logistics in Europe. With the company’s rapid growth, alignment between practice and supply chain was key. Our task was to enhance three key pillars: cost efficiency, sustainability, and service. The company’s warehouses were geographically scattered, leading to increased CO₂ emissions due to transportation. We therefore wanted to streamline operations to better serve customers both online and in-store, ensuring timely and efficient delivery while reducing environmental impact.

The solution

Supply chain roadmap

Using a data-driven approach, multiple scenarios to optimise the supply chain, considering the three key pillars was developed. Factors such as quantities, growth patterns, labour availability and costs were analysed. Risks, such as warehouse downtime, are also assessed. The outcomes were meticulously mapped, accompanied by a roadmap detailing the transition from the current to the most optimal scenario. Questions like when to open or close distribution centres, CO₂ emissions per scenario and cost impacts were addressed. Ultimately, consolidating into one central warehouse with satellite locations emerged as the most favourable solution.

The result

Enhancing the retail and consumer industry

The company now enjoys reduced costs and a more streamlined network, ensuring prompt delivery of goods to the right places, benefiting consumers. Sustainability was a crucial aspect, being a B Corp company. The outcomes precisely depicted CO₂ emissions per scenario, including co-packing of the boxes. Also, insights on integrating this process of co-packing into the warehouse are shared, aligning with stringent sustainability standards