Culina Logistics
Supporting Business Development
Not all customers are equal and in the context of providing distribution services some cost significantly more to serve than others. Cost-to-Serve is thus a key concern for any company delivering value-added services and this particularly applies when a multi-user network is in operation.
Davies & Robson has been providing consulting services to Culina Logistics for a number of years, during which time this specialist provider of logistics solutions for chilled food and drinks manufacturers has grown to become a key player in the UK contract logistics market with clients including big name brands such as Tropicana, Kraft, Kerrygold and Müller Dairy. With three hi-tech temperature controlled distribution centres providing a total network capacity of 44,000 pallet spaces, a fleet of satellite tracked vehicles and over 750 staff they provide both dedicated and shared-user warehouse and distribution operations and award winning levels of customer service.
As part of an ongoing strategy to provide customers with optimally cost efficient operations, Culina’s Managing Director, Rien Brakel, recently approached Davies & Robson to assist in the development of analytical software to help Culina calculate their cost to deliver at both a client level and by individual customer order. Such a tool would then enable the development of menu based pricing of delivery services and facilitate robust ‘what if’ modelling capability.
Davies & Robson determined a methodology and prepared a structured project plan following initial meetings with key Culina personnel. In the first instance, delivery volume and operational cost data was obtained to provide a base-line cost per delivery unit. A UK delivery cost matrix was prepared which apportioned cost relative to order size and delivery location. Following testing and validation the model was tailored to suit Culina’s operational requirements and provided along with comprehensive instruction and training to enable ongoing development and the impact of future delivery and cost data to be undertaken in-house by Culina.
Following a successful implementation, the software has provided Culina with a number of significant opportunities, including the ability to;
Accurately trace the cost of providing delivery services at order and customer level and by delivery point
Develop timely and accurate pricing of new business opportunities
Determine potential operating cost changes with differing activity profiles
Perform customer segmentation enabling Culina to incentivise and reward customers who migrate to lower cost service models
In conclusion, the improved clarity of operating costs at activity level provided by the software developed by Davies & Robson has enabled Culina to maintain its objectives to minimise costs, optimise service and develop operational flexibility, thus ensuring Culina is well placed to support ongoing retailer initiatives and other business changes.
www.culinalogistics.co.uk
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