Optimized Ground Freight Costs Amongst Multiple Warehouse Locations
Opportunities
- Materially reduce ground freight costs and optimize products to increase profitability
Challenge
- Distributor was facing increased digital marketplace competition, which was leading to decreased margins
- Distributor needed methods to identify profitable growth ideas
Solution
- Collected and analyzed 3 years of sales data
- Analyzed distribution network
- Rebalanced inventory for U.S. warehouse locations to maximize freight profitability
- Identified profitable products and partners to determine which products to continue stocking
Results
- Increased margins by projected $3MM-$4MM in freight savings
- Realigned sales focus to more profitable brands