The client and context:
· The client is one of the largest paint manufacturer and distributor in the world.
· They grew their network in a market through an aggressive external growth policy.
· The company wanted to integrate better its supply chain and rationalise the purchasing of transport services.
The challenges:
The newly acquired businesses had been poorly integrated and the company had a complex and inefficient distribution network centered around 5 distribution platforms across the territory. The company’s financial performance became poor and the supply chain became the highest area of loss generation.
What we Did:
· We rationalised the client’s supply chain, moving from 5 to 2 warehouses supporting the entire distribution network.
· We reviewed the purchasing of transport services by:
· Analysing the transport pattern to negotiate on what would really impact the service
· Massification and rationalisation, going from over 10 transport providers to just 2
· RFQ and support to the client on the negotiation of new transport contracts
What we achieved:
We reduced the overall spend in transportation cost by 27%, of which 12% was due to warehouse rationalisation and 15% due to better purchasing processes, rationalisation of couriers and renegotiation of transport rates
10% of orders have had their delivery lead time reduced by 1 day or more thanks to better transport performance
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Expert Team
Expert Team
Argent Chuula
Managing Partner, Zambia | Agriculture, NGO, Research
Mohammed Lafta
Managing Partner, Iraq | Energy Distribution & Generation, Engineering Services, Infrastructure
Philip Gouws
Senior Partner, Africa | Retail, Product Development, Media
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