CASE STUDY

Food Distributor optimizes supply chain through network design study​

​A leading distributor of consumer packaged goods in the food sector faced a critical in its supply chain network design. With dozens of warehouse and cross-dock leases expiring, capacity constraints at select facilities, continued volume growth forecasted, and the opportunity to expand into new markets, the distributor needed a comprehensive approach to strategically evaluate and redesign its distribution network to support ongoing growth

OVERVIEW

Industry
Logistics
Wholesale & Distribution
Food & Beverage
​Consumer Packaged Goods
Client
Food Distributor
Location
North America
Services
Network Design & Site Selection
Challenge
Expiring warehouse leases and capacity limits required a strategic supply chain overhaul.
Approach
A comprehensive supply chain network design study identified optimal locations and fleet needs.
Recommendation
Analysis revealed efficiencies by consolidating sites and integrating labor resources.​
Results
The distributor reduced costs, improved flexibility, and enhanced future readiness.​

THE STORY

The Challenge

The distributor was managing a complex network of distribution centers and cross-docks, some operating near full capacity and others subject to impending lease expirations. The organization sought to not only maintain service to current customers but also position itself for future volume growth and geographic market expansion. Key considerations included integrating manufacturing plant locations, identifying warehouse locations with barriers to closure, identifying warehouse locations with constraints on expansion, evaluating optimal locations for distribution centers and cross-docks, integrating potential new sites, and ensuring that labor resources could scale with market demands—all while controlling costs and maximizing operational efficiency.

Our Apppoach

Our experts led a supply chain network design study, leveraging deep expertise in supply chain logistics & distribution strategy and supply chain network design software.  The project included:
  • Developing a robust strategy and structured process for network modeling, tailored to the client’s current manufacturing and warehouse footprint.
  • Conducting a thorough assessment of existing supply and distribution facilities, along with market-specific fleet forecasts to anticipate future needs.
  • Evaluating labor pool integration to handle additional customers and new delivery stops as the network evolved.
  • Identifying and modeling various DC and cross-dock location scenarios, with detailed financial analysis of fixed and variable operating costs.
  • Presenting site location recommendations that balanced proximity to demand, scalability, operational flexibility, and cost savings.

Our Recommendations

The network modeling analysis revealed significant opportunities to optimize the footprint of distribution centers and cross-docks. By integrating labor pools between facilities, the distributor could improve trailer utilization—allowing for shuttle runs and delivery routes to be consolidated more efficiently. The study recommended targeted investments in the most strategically positioned sites, streamlining operations and creating a framework for scalable growth aligned with the distributor’s market ambitions.

The Results

The optimized network design enabled expansion into new markets & supported forecasted volume growth, while delivering lowered fixed and variable costs, enhanced operational flexibility, and positioned the company to meet future demand with greater confidence, efficiency, and agility.  Through the implemented recommendations, the distributor also realized a 10% reduction in required trucks, translating to lower transportation and labor costs. The integration of labor pools enabled better fleet utilization and service coverage as new customers and locations were added.