Transport strategy for a polish omnichannel retailer
The Challenge
A manufacturing company faced exorbitantly high distribution costs per cubic meter (m³), which severely impacted profit margins. Key issues included inefficient in-house logistics, uncompetitive freight rates, and a cumbersome goods preparation process, all of which limited the company’s market competitiveness.
What We Do
To tackle these challenges, the company implemented a strategic initiative to reduce distribution costs:
Outsourcing Logistics Operations – shifted in-house logistics to specialized third-party providers (3PL) to leverage expertise and economies of scale.
Conducting a Freight Tender – ran a competitive tender for freight and distribution services, securing favorable rates based on volume and service-level agreements.
Modifying the Goods Preparation Process – streamlined operations by adopting lean principles, automating manual tasks, and optimizing packaging and palletization for better space utilization.
Results
The initiative led to remarkable outcomes:
60% Reduction in Distribution Costs per m³ – achieved through outsourcing, competitive tendering, and process optimization.
Enhanced Operational Efficiency – faster turnaround times, higher throughput, and smoother logistics operations.
Improved Profit Margins – significant cost savings directly boosted the company’s bottom line.
Increased Market Competitiveness – lower costs allowed more competitive pricing, faster delivery, and stronger market positioning.
Summary
The company successfully cut distribution costs per m³ by 60% through strategic logistics outsourcing, competitive freight tendering, and optimization of the goods preparation process. Key highlights include:
60% lower distribution costs
Improved operational efficiency and throughput
Enhanced profit margins and competitiveness
This case demonstrates the power of strategic outsourcing, competitive sourcing, and process improvements in achieving substantial supply chain cost reductions and strengthening market position.
