{"id":5257,"date":"2021-03-29T11:07:17","date_gmt":"2021-03-29T16:07:17","guid":{"rendered":"http:\/\/preprod.c2point0.com\/uncategorized\/optimisation-du-reseau-de-distribution-pour-un-leader-multinational-en-commerce-de-detail\/"},"modified":"2021-03-31T14:47:19","modified_gmt":"2021-03-31T19:47:19","slug":"optimization-of-the-distribution-network-for-a-multinational-retail-leader","status":"publish","type":"post","link":"https:\/\/preprod.c2point0.com\/en\/case-studies\/optimization-of-the-distribution-network-for-a-multinational-retail-leader\/","title":{"rendered":"Optimization of the distribution network for a multinational retail leader"},"content":{"rendered":"\t\t
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Year<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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2019<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Type of project<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Transport<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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savings<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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85M$<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Directed by<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Afef Bouguerra
Martin Nadon<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Overview<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Customer Presentation<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Our client is a leading multinational retailer specializing in mass distribution. He is ranked in the Fortune 100, a ranking of the top 100 U.S. companies by revenue size.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Challenge<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In a context of shortage of carrier availability, the customer was looking to ensure capacity for its network. Thus, he wanted to reduce his transportation costs, which were too high, and minimize the carrier database (the number of carriers to manage).<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Client's goal <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The client wanted to carry out a transportation tender in order to optimize their distribution network for their store in Canada and Mexico.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Execution of the project<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Based on one year of historical data, Conseil 2.0 modeled the distribution network by defining 14,000 lanes (origin-destination) for Canada and 1,800 lanes for Mexico. The historical data also defined a baseline (historical cost) of $450M for the Canadian distribution network and $285M CDN in Mexico. The historical data was used to perform a comparative evaluation at the end of the project to determine the savings generated.<\/p>

Both projects included different modes of transportation: TL, Intermodal and LTL. More than 1200 carriers were and were invited to participate in these events.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The 6-step methodology was proposed and adopted by the client:<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The objective of this phase was to evaluate the carriers invited to the event. A qualitative questionnaire was sent to the carriers to find out if they met the criteria and requirements of the client. Only qualified carriers had access to the following steps.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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All qualified carriers in the RFI step were asked to provide rates for the lanes they were interested in. During round 1, Conseil 2.0 ensured the validity of the bids received and supported communication with all carriers throughout the event.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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The objective of this step was to provide feedback to the carriers that participated in round 1, informing them of their position relative to other participants and also to correct the bids if there were any errors on their part. The feedback given to the carriers allowed us to maximize the savings that we were able to obtain from the market.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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In collaboration with the client, Conseil 2.0 defined different scenarios of analysis and simulations to find the best solution that would meet the client’s needs and requirements.<\/p>

Examples of scenarios realized<\/p>