Value chain analysis and network design for a global white goods manufacturer
The Challenge
The company struggled with inefficiencies in its distribution network, spanning both owned factories and external suppliers. Without a centralized system to track and analyze distribution costs, non-profitable flows remained hidden, causing financial losses and operational inefficiencies.
What We Do
Central Profitability Database – Built a comprehensive database integrating cost data from factories and suppliers, ensuring accuracy and timeliness
Advanced Analytics – Implemented tools to identify inefficiencies, non-profitable flows, and predict future risks
Cost Reduction Initiatives – Eliminated or restructured unprofitable flows through renegotiations, route optimization, and streamlined operations
Continuous Monitoring – Established real-time cost monitoring and ongoing optimization of distribution flows
Results
7% of non-profitable flows eliminated – direct boost to profitability
Operational efficiency improved – optimized routes, reduced lead times, and lowered costs
Financial performance strengthened – resources reallocated to profitable activities
Data-driven decision making embedded – ongoing visibility and control over distribution costs
Summary
By developing a central profitability database and applying advanced analytics, the company:
Reduced 7% of non-profitable distribution flows
Increased operational efficiency & reduced costs
Improved financial performance and profitability
Established a data-driven culture for continuous improvement
This project shows how centralized data and analytics can transform distribution networks into profitable, efficient, and sustainable operations.
