Originally Published on: QuantzigHow we helped a leading material spirits manufacturer effectively plan the distribution through dynamic targeting

Overview

Client: Discover how a leading material spirits manufacturer orchestrated a distribution overhaul, slashing costs and ensuring seamless product delivery.

Challenges: The client grappled with inefficient distribution planning, soaring transportation expenses, suboptimal route strategies, a lack of distribution network visibility, and resource constraints for effective analysis.

Solutions: Leveraging advanced analytics, Quantzig executed distribution cost optimization strategies, fine-tuning production schedules, aligning distribution plans, identifying load consolidation opportunities, and implementing a real-time tracking system. The dynamic targeting system delivered end-to-end visibility, enabling proactive issue resolution and ensuring punctual and accurate deliveries.

Impact Achieved

• Attained a remarkable 29% reduction in spike order costs.
• Realized a substantial 24% cut in costs linked to 3PL deliveries.
• Established near real-time visibility across the distribution process.

Industry Insight

The European spirits manufacturing industry, blending tradition, innovation, and quality commitment, significantly contributes to the region's economy and cultural heritage. The sector, characterized by strict quality standards and sustainability practices, operates within a highly regulated framework.

Client Context

Our client, a European spirits manufacturer with an approximate revenue of $1 Billion, embraced a hybrid strategy involving an in-house fleet and trusted 3PL vendors. However, their existing allocation method, relying on partial cost calculations, led to costly leaks, impacting profitability and hindering revenue optimization.

Navigating Challenges

The client encountered obstacles in demand management, capacity planning, and supply planning. Inefficient consolidation processes resulted in excess costs during demand spikes, while a lack of accurate cost visibility hindered dynamic targeting. The simplistic supply planning approach overlooked real-time data needs, leading to inefficient resource allocation. Additionally, neglecting order consolidation and staggering resulted in missed cost-saving opportunities.

Strategic Solutions

Quantzig crafted a comprehensive demand management and fleet utilization system, incorporating order forecasts for precise demand anticipation. A dynamic order management system enhanced order consolidation and palleting efficiencies, minimizing distance traveled, reducing transportation costs, and optimizing resource utilization. A framework calculated the total cost of self-deliveries, enabling data-driven decisions on delivery strategies.

Leveraging advanced analytics, Quantzig transformed delivery prioritization and introduced a comparative platform for swift decision-making between the client's fleet and 3PL providers. Advanced order dicing algorithms optimized order delivery costs by breaking down orders into smaller, efficient units.

Unlock distribution excellence with Quantzig's innovative solutions.