Transport cost optimization for a distributor of fast-moving consumer goods
The customer is one of the leading distributors of fast-moving consumer goods in Norway. It has a central warehouse outside Oslo and incurs annual transportation costs of more than NOK 100 million.
Customer need/ Project scope
After onboarding a significant group of new customers, the company’s transportation costs had been rising more than its revenue. This was partly due to extensive precautionary measures to ensure delivery fulfillment.
Akselera’s customer wanted to identify benefits and appropriate actions to secure a reduction in transport costs going forward. Both inbound and outbound transportation were included the project’s scope. Warehouse operations and purchasing were not covered, except where there were direct links to transportation costs.
Brief description of Akselera’s role, deliverables and results
Akselera fielded a team of three consultants, working closely with business process owners in workshops and QA meetings. Based on interviews, workshops, and benchmarking tools, we drew up an action plan that would reduce transportation costs by approx. NOK 15 million (15% of base line transportation costs). The activities involved re-planned routes, the renegotiation of target prices from third-party transporters, and process improvements (handling and transport).