Case Study: UK Government Department
Developed a Cost to Deliver model
The Challenge
The client managed a highly volatile supply chain comprising a broad inventory range, an array of warehouses with multiple inventory, warehousing and financial systems. The cost to deliver was not understood with end customers not understanding the supply chain or financial implications of their decisions. Further, the client could not base line their operational spend, segment their customer base or understand cost driving customers/SKUs.
Data Sets Analysed
Distinct UINs
Distribution Centres
Financial Baseline
(In Scope Costs)
The Squarcle Solution
Squarcle mapped the current supply chain, including warehousing, processes, systems and equipment. Conducted a cost baseline of the current operation from the previous years spend. Fused together an array of complex data sets from a fractured UK Government Department and commercial ERP landscape. Conducted activity-based costing, mapping costs to activities, people, infrastructure and equipment. Applied advanced analytics and visualisation tools enabling the client to understand their supply chain costs and customer base
The Results
Designed and delivered a bespoke SC Cost to deliver model that provides the cost to deliver each individual SKU against a product range of 250,000 SKUs, to each FLC, customer, 3PL provider or core fleet. Identified Operational efficiency improvements to include SKU rationalisation, direct delivery and economic order quantity opportunities for a £198M annual operating cost.
Squarcle are deep supply chain experts with intimate knowledge of Defence Support. They have successfully transitioned us into a digital era, ensuring Defence outputs, while reducing supply chain risks and operating costs.
