Rising costs and increasing client expectations caused by the complex, global supply markets in an ‘omni-channel’ world are two major challenges facing the Logistics sector.
Outsourced logistics services now reach far beyond the spot buying of transport: from warehousing to order processing, inventory management, packaging, kitting or final assembly, and aspects of supplier management may be included in a contract. Establishing ‘partnerships’ is key, but contracts need the flexibility to cope with short product life cycles, changing supply bases, and different routes to market.
Efficio brings a unique and holistic approach to logistics optimization. Evaluating strategic levers such as network design as well as the more operational issues of price and process efficiency is a vital part of the process. Our clients, which include Alliance Healthcare and Robert Bosch, range from consumer product companies (including their heavy logistics requirements such as plant movements), wholesalers in pharmaceuticals, automotive parts and elsewhere, lab operators, retailers and the chemical industry.
Our experience in optimizing complex national and international logistics operations is extensive. We have consulted clients that have benefited from a 25% reduction of their logistic cost – making a significant contribution to their bottom line and creating an efficient platform to support further growth, by serving clients faster, more reliably and with a more innovative logistic concept.
Efficio works by benchmarking the efficiency and effectiveness of the current logistics operation. We ensure that market dynamics (for example, fuel prices) are fully captured in current logistics costs and that processes are in place to capture trends advantageously in the future.
The ‘make or buy’ or insource/outsource consideration is crucial. While for many clients logistics is not a core skill, there are others where the operation is so critical that it should retain the in-house expertise.
Efficio’s logistics understanding is underpinned by a fact and data driven analytical approach. Clients gain access to our eEmpowered tender process and analysis system eFlow, while training from our specialized consultants ensures all procurement solutions are implemented and capable of long-term development.
Our Logistics and Supply Chain Optimization service typically delivers client benefits of 6-15% of spend, with a Return on Investment better than five. Beyond direct cost savings, clients often find that of even greater value is the simplification of logistics operations, through using fewer partners but with better links between operations, and enhanced, customer-satisfying service levels through the negotiation and management of effective Service Level Agreements.