LOGISTICS TURNAROUND & NETWORK CONSOLIDATION
Restoring Profitability Through End-to-End Logistics Redesign
THE CHALLENGE
The distributor had been loss-making for years. A two-warehouse setup and inefficient logistics drove high costs and low productivity. Many small, frequent orders resulted in poor roll-container fill, half-empty trucks and excess transport kilometres. Weak storage and picking logic increased walking time and delayed orders. With limited cost-to-serve visibility, unprofitable customers and routes persisted, and the dual-warehouse network duplicated work without improving service. A structural turnaround was required to return to profitability.
How we can conquer this problem together
OUR APPROACH
1. Stabilize
- •Quickly deliver operational quick wins to stabilize costs and service while the broader transformation is prepared
- •Fix the most critical warehouse and transport inefficiencies to cut losses and free up cash
- •Rebuild operational control and credibility with early results, creating momentum for structural change
2. Optimize
- •Improve warehouse productivity, picking logic and transport utilisation to boost throughput without added risk
- •Redesign customer, routing and delivery patterns to remove structural inefficiencies from daily operations
- •Lock in higher sustainable productivity before making any network or footprint decisions
3. Restructure
- •Use productivity gains to reduce complexity and consolidate the network without hurting service
- •Merge warehouse operations once robustness and spare capacity are proven in practice
- •Shift to a simpler, lower-cost network through end-to-end optimisation, not top-down cost cutting
4. Secure
- •Embed new standards, metrics and governance to lock in savings and service gains
- •Keep the consolidated network resilient with clear ownership, planning routines and decision rules
- •Build a scalable logistics platform that supports profitable growth without reintroducing legacy complexity
THE IMPACT
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