CASE STUDY
Food Distributor – Strategic & Operational Assessment to Reduce Distribution Costs
A leading regional distributor of frozen, fresh, and shelf-stable consumer food products, serving retail accounts across several western states, sought to reduce distribution expenses while maintaining strong service levels. With the upcoming addition of a major supplier’s product line, the company needed to determine the optimal route-to-market strategy to support growth and cost efficiency.
OVERVIEW
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THE STORY
The Challenge
The distributor faced rising distribution costs and recognized the need for targeted, sustainable solutions. The complexity of servicing both small and large retail accounts across a wide geographic area, combined with new product lines, made it essential to assess current operations and identify improvement opportunities.
Our Apppoach
PS Solutions Group was engaged to conduct a strategic and operational assessment. The project included:
- Collaborating with company leadership to understand business objectives and current challenges.
- Performing process capability assessments through management interviews and route observations.
- Benchmarking departmental and process capabilities against industry best practices.
- Prioritizing improvement opportunities based on effort and potential impact.
Our Recommendations
The assessment revealed several areas where operational processes could be streamlined and costs reduced without compromising service. Key opportunities included optimizing route planning, refining warehouse procedures, and enhancing cross-departmental coordination. Recommendations were prioritized to focus first on initiatives with the greatest impact and feasibility.
The Results
The company received a comprehensive capability assessment, including general observations, benchmark comparisons, and a prioritized list of actionable recommendations. This provided a clear roadmap for reducing distribution expenses and supporting future growth, while maintaining the high service standards valued by their retail customers.