How a renowned FMCG company was able to reduce logistics cost by 3-5% in their operations?
A leading FMCG company cut logistics costs by 3–5% using data-driven optimization and strategic supply chain improvements enabled by Ken Research.
Client Background and Challenges
A leading global snack company, renowned for its biscuits, chocolates, gums, and candy products, sought assistance to address rising logistics costs. Operating across 80+ countries with a workforce of over 80,000, the company faced significant challenges in managing road freight and warehousing expenses. Additionally, the company aimed to evaluate new market opportunities in road freight, warehousing, and co-packing services within India to streamline operations and maximize efficiency.
Key Challenges:
- High logistics costs due to inefficiencies in road freight and warehousing services.
- Limited clarity on market opportunities for collaboration and cost rationalization.
- A need for in-depth market intelligence to make informed strategic decisions.
Strengths: Leveraging Ken Research’s Expertise
Ken Research, a leading market intelligence and consulting firm, partnered with the client to address their challenges. Our data-driven approach and deep understanding of the logistics sector allowed us to provide tailored solutions.
Our Key Strengths:
- Extensive industry insights into pricing, routes, and service providers in road freight and warehousing.
- Proven expertise in competition benchmarking and value chain analysis.
- Established methodologies for market assessment and opportunity identification.
Opportunities Identified
Through a three-phased approach, Ken Research identified opportunities for cost reduction, strategic partnerships, and market positioning:
- Pricing Optimization:
- Analyzed pricing across multiple routes and locations for road freight services.
- Provided insights into axle norms and their impact on pricing.
- Delivered actionable recommendations for cost rationalization.
- Market Benchmarking:
- Conducted deep-dive benchmarking on competition frameworks, market share, and positioning of key players.
- Assessed warehousing prices and identified optimal locations for operations.
- Strategic Collaborations:
- Identified potential partners to enhance operational efficiency and reduce logistics costs.
Aspirations: Driving Strategic Growth
The client aspired to become a benchmark in logistics efficiency within the FMCG industry. By leveraging Ken Research’s expertise, they aimed to:
- Achieve a 3-5% reduction in overall logistics costs.
- Build strong partnerships to streamline warehousing and co-packing operations.
- Establish a robust market presence by identifying high-growth segments.
Results Achieved
Ken Research delivered impactful results that addressed the client’s immediate and long-term objectives:
Cost Reduction:
- Achieved a 3-5% reduction in logistics costs, translating to an estimated savings of $20 million annually.
Market Insights:
- Delivered comprehensive market intelligence on container trucks and end-user analysis.
- Provided a detailed competition-specific market assessment to enhance decision-making.
Strategic Recommendations:
- Identified synergies for the client to collaborate with top-performing companies in the logistics sector.
- Mapped recommendations across short-term and long-term strategies using a market-consumption framework.
Business Impact:
- Enabled the client to reposition themselves as a cost-efficient logistics leader within their industry.
