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Fast Savings for Fast Food Firm

The client

"Fast food and bakery" retail organisation comprising some 300 High Street outlets

Recently bought-out subsidiary of a major multi-national

The challenge

reducing the cost base

creating and implementing robust purchasing, warehousing and distribution processes

The solution

Supported the senior management (MBO and VC) team through the modelling of "as-is", identifying the true costs associated with each brand route to market and defining current process strengths, weaknesses and risks. We then introduced alternative scenarios with cost / benefit / risk analyses, inputting our knowledge of industry best practise, "best of breed" suppliers and 3rd party distribution services.

Created a model of each alternative which allowed modification in a live workshop environment to demonstrate the impact and interrelation of each parameter. Using this, facilitated the Management team's decisions on developing a holistic cost / customer service / warehousing / purchasing strategy based on quantitative numbers rather than instinct.

Re-engineered the purchasing, replenishment and storage processes and procedures between outlet, central and third party to ensure minimum lead-times, maximum availability and minimum stockholding.

Facilitated workshops with the purchasing and distribution teams to develop appropriate control and monitoring mechanisms.

Nominated a range of alternative (more appropriate) providers and managed the tender and selection process.

Trained the central function in the new procedures by running trial workshops.

Developed the implementation plan and supported the internal project team with on and off site involvement in achieving their objectives.

Benefits at a glance

As a result of our work with them the client gained the following benefits:

  • Total cost of delivered product reduced from 16.6% to 11% of turnover.
  • Full transition from old system to new achieved within three months. Cost savings generated by the end of week one.
  • Delivery frequency to most stores increased to daily with resultant decrease in storage and increase in sales area.
  • Reduced the central overhead.
  • Project competed within three months.
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