The challenge
High logistics costs required a review of the entire operation: e-commerce fulfilment, warehouse organisation, team structure and contracts covering the facility and its upkeep.
Our actions
We changed the e-commerce fulfilment process and reorganised warehouse operations. We improved the team structure, shift planning and the balance between permanent and agency staff to match operational needs.
We introduced appropriate KPIs to monitor productivity and handling costs, quickly identify problems and track the impact of changes.
In parallel, we renegotiated contracts for:
- the warehouse lease with the developer and property owner,
- gas and electricity supply,
- cleaning,
- security.
The result
Following changes to processes, workforce organisation and contract terms, the annual logistics budget was reduced by 18%.
The project demonstrates the value of reviewing costs as a whole. Work organisation, order fulfilment, staffing and contract terms all affect the final result.