Logistics Strategy Case Study, Bisham Logistics

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Client: VandenBergh Foods Limited

The Project:
A Strategic Supply Chain Review

VandenBergh Foods Supply Chain had two distinct parts, an extensive range of consumer products sold through the supermarket retail trade and a comprehensive range of products for the UK food manufacturing industry. Apart from large versions of the consumer products, the industrial products had specialised formulations to meet their specific needs. These products were made at two UK sites: one North, one South and intermediates were manufactured at both sites. The industrial customers were focussed in northern England.
The strategic review, forced by the need to justify the replacement of the train used to transport intermediates across the country, was to reduce the total distributed costs of products to the customers, including the cost of acquisition.
· The as-was supply chain was mapped in detail
The associated costs with each leg of the process was mapped. This involved collecting cost details in a different format to the management reporting reports
· A model of the supply chain was built to allow the costs and investment returns of each stage of the supply chain to be calculated
· What-if models of the potential alternatives were then analysed. These models covered raw material and packaging acquisition, manufacturing costs, intermediate distribution costs, warehousing and distribution costs to all customers
· The costs of re-organisation were factored into the analysis A detailed analysis of three alternatives covering:
· Current supply chain map and costs
· Investment required for the recommended route and one alternative
· Savings to be realised
· Implementation plan covering 3 years · A strategy that focussed the manufacturing and supply chain organisations along market lines
· An 8% reduction in the capital required to service the market
· A 25% reduction in distribution costs, both internal and to customers
· A 20% increase in customer service (with other measures)
· Enabled a reduction in stock-holding
· A route to make further savings