Logistics Assessment

$460M Manufacturing Distributor

Background

  • Global manufacturer and distributer of branded consumer products
  • Product uses include military, law enforcement, fire safety, and consumer entertainment
  • Several domestic manufacturing sites with a global network of distribution centers

Contributions

  • Conducted center of gravity analysis to determine optimal distribution footprint
  • Analyzed fixed and variable costs to quantify potential savings opportunities
  • Developed a list of candidate third-party logistics (3PL) partners with whom the company should partner with
  • Wrote request for proposal (RFP) to outsource all aspects of distribution operation to a 3PL partner
  • Analyzed and compared 3PL quotes to understand cost drivers and better inform negotiating levers

Results

  • Recommended solution that identified $2M of EBITDA and $1.5M of working capital savings
  • Crafted a comprehensive 3PL RFP that allows the company to create scale and best practices within its distribution operation
  • Developed a model through which company can understand multi-year 3PL contracting costs and negotiating levers