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Cutting Delivery Costs by 28%

Operations redesign for a regional logistics group.

Cutting Delivery Costs by 28%
+28%Cost reduction
9 moTo full rollout
$3.2MAnnual savings

The challenge

A regional logistics group with 1,400 employees was losing margin on every delivery. Routes were planned manually, depots worked in silos and nobody could see true cost per drop.

Our approach

  • Mapped every depot process and measured cost per delivery
  • Redesigned routing and depot handover rules
  • Built a weekly performance dashboard for managers
  • Trained 60 supervisors to run the new model
Operations team reviewing delivery data

The results

Within nine months the group cut delivery cost by 28%, improved on-time delivery from 86% to 96% and released $3.2M a year in savings.

We finally see what every delivery costs. The team owns the numbers now.Marcus Hale, COO