Distribution centers reduce operating costs by 10%.
Project yields 400% annualized ROI.


Strategic Intent

Develop and rapidly implement new operating model addressing issues of report accuracy, cost predictability and overall process improvement, delivering functional performance metrics and controls


Situation

  • Leading international grocery retailer
  • 140 retail stores in western Canada
  • Three distribution centers (DCs) serve wide area
  • Each DC uses a different transportation mode
  • Executive management frustrated by inability to determine most economical mode of transportation

Issues and Barriers

  • Difficulty evaluating transportation costs due to poor data collection and report design
  • No consistent utilization of existing systems across DC transport departments
  • Transportation reports contain inaccuracies
  • Lack of clarity and understanding across the organization regarding goals and objectives
  • No common measure of equipment utilization from location to location
  • Lack of formal approach to vendor management and selection

Key Implementations

  • Standardized and accurate transportation reporting process
  • Comprehensive management process focused on identifying and evaluating key cost drivers and decisions on a daily basis
  • Best-practice driven processes to assure consistency and standardization
  • New set of tools for measuring asset utilization
  • Comprehensive performance metrics to drive sustainable improvements

Results

Key Strategic Results

R_W-CS2

At the conclusion of our engagement, a consistent and robust system for managing has been fully implemented across DCs and transportation management staff. As a direct result of this initiative, the client realized these improvements:

  • 10% reduction in overall operating costs within the DCs
  • 6% gain in DC asset utilization
  • 400% annualized ROI on Brooks engagement

Client Perspective

Brooks International helped us better understand and evaluate our transportation operations and has laid the foundation for continuously lowering our transportation costs.
—Chief Financial Officer


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