What would need to be true to make more money without selling an additional unit or increasing prices? Or perhaps to improve the level of service to your customers without adding costs?
Either way, there could be hidden opportunities in your sourcing or distribution network such as:
Consider this real world example:
A privately-held, $500M manufacturing & distribution company had a hypothesis that their distribution network was overly complicated and driving up their costs. They wanted to operate at a best-in-class level and drive down costs without sacrificing the level of service to their customers.
With the help of an Advisor they were able to assess their distribution network and identify multiple opportunities to reduce costs and improve service, such as
The Company also found that they had sub-optimal movements such as imports from overseas that were brought into the Midwest, only to be unpacked and shipped back out to a location on the coast. They worked with their suppliers and customers to create direct shipments that significantly reduced their costs.
As a result of this work they were able to reduce their annual transportation and storage spend by 14%. They also improved their On-Time delivery to customers by 8% while simultaneously reducing their inventory by 15%.
Network Optimization allowed them to provide a better level service to their customers while also giving themselves a raise.
This is the experience our Advisors can bring you.