UK Distribution Cost Modelling & Optimisation
UK distribution cost modelling and optimisation uncovering significant savings opportunities.
Read the full storyKey Result
£1.5M cost reduction identified
Working with JELD-WEN UK
~40%
Potential transport savings identified through route optimisation - £440K reduction opportunity
Cost-to-Serve
Transparency tool developed to evaluate product margin across distribution models
Cross-functional
Planning process facilitated with Sales, Operations, Production, and Distribution teams
JELD-WEN, one of the UK's largest manufacturers of internal doorkits, operates from sites in Penrith and Sheffield. With future growth in mind, the business wanted to assess whether its current distribution model was fit for purpose.
The Challenge
JELD-WEN needed to assess whether its distribution model was cost-effective and fit for future growth. A clearer view of costs, efficiencies, and network optimisation was required.
Key Issues Identified
- Need to evaluate if current distribution model was fit for purpose
- Distribution Cost Breakdown required across warehousing, packaging, transport, and product ranges
- Future Network Feasibility exploration needed including 3PL options
Our Approach
Developed a detailed cost-to-serve model and analysed the network through optimised distribution modelling.
Cost-to-Serve Tool development incorporating fuel, labour, packaging, and transport costs
SKU-level breakdown by customer location and breakeven point identification
Optimised Distribution Modelling extending planning windows from one day to two weeks
Forward Planning Workshop with central planning teams
"Working with Libra Europe has been a transformative experience for our organisation. Their team of experts provided us with strategic guidance and performance improvement solutions that will significantly enhance our operational efficiency."
Chris Miller
Sales Director, UK
Key Benefits
- Transport Cost Savings - Identified potential 40% reduction through optimised network modelling
- Cost to Serve Visibility - Transport cost analysis tool for future tender processes
- Future Distribution Network - Created understanding and cost implications of more complex models
- Increased vehicle fill by 20% through extended planning windows
Project Details
- Client
- JELD-WEN UK
- Industry
- Manufacturing
- Key Outcome
- £1.5M cost reduction identified
The Results
Measurable outcomes that demonstrate the impact of our partnership
~40%
Potential transport savings identified through route optimisation - £440K reduction opportunity
Cost-to-Serve
Transparency tool developed to evaluate product margin across distribution models
Cross-functional
Planning process facilitated with Sales, Operations, Production, and Distribution teams
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