Revolutionizing Distribution Planning for a Leading Spirits Manufacturer: A Case Study

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This case study examines how a leading material spirit manufacturer successfully optimized their distribution planning to reduce costs while maintaining efficient and timely delivery of their products.

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

Client: This case study explores how a prominent spirits manufacturer transformed their distribution planning, achieving cost reduction and enhancing delivery efficiency.

Challenges: The manufacturer encountered hurdles related to inefficient distribution planning and rising transportation costs, including suboptimal route planning and limited visibility into the distribution network.

Solutions: Leveraging advanced analytics, Quantzig implemented distribution cost optimization strategies, optimizing delivery routes, identifying load consolidation opportunities, and introducing real-time tracking for dynamic targeting.

Impact Achieved: The initiatives resulted in a 29% reduction in spike order costs, a 24% decrease in third-party delivery expenses, and near real-time visibility throughout the distribution process.

Industry Insights: The spirits manufacturing industry in Europe is known for tradition, innovation, and stringent quality standards, with an increasing focus on sustainability and eco-friendly practices.

Client Overview: Our client, a European spirits manufacturer with a revenue of approximately $1 billion, utilized a hybrid distribution strategy involving both in-house fleet and 3PL vendors. However, existing allocation practices posed profitability challenges.

Challenges Addressed: The client's demand management system lacked forecasting capabilities, leading to suboptimal order consolidation. Additionally, outdated supply planning failed to capture operational dynamics, resulting in inefficiencies.

Implemented Solutions: Quantzig developed a comprehensive demand management and fleet utilization system, integrating order forecasts for optimized resource allocation. Dynamic order and reverse logistics systems improved efficiencies in consolidation, palleting, and delivery prioritization. A comparative platform facilitated informed decisions between in-house fleet and 3PL providers.

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