Global Spirits Manufacturer Join Hands with Quantzig to Effectively Incorporate Dynamic Targeting For a 29% Reduction in Order Costs Among Others

Business Challenge

A leading European spirits manufacturer, generating approximately $1 billion in revenue, faced significant challenges in optimizing its distribution planning. The company employed a hybrid distribution strategy, utilizing both its fleet and third-party logistics (3PL) providers. However, inefficiencies in their allocation strategy resulted in financial leakages at various distribution stages. Partial cost calculations led to uninformed decisions about fleet utilization, delivery consolidation, and optimal logistics planning.

Inefficient allocation strategy

Lack of cost visibility

High operational costs

Additionally, the lack of accurate cost visibility prevented the client from identifying the most cost-effective distribution approach. Without a data-driven methodology, the manufacturer struggled to determine the right balance between in-house fleet usage and 3PL engagement. This gap in strategic planning resulted in higher operational costs, frequent redundant trips, and inefficiencies in their supply chain. To improve cost control and delivery efficiency, the client sought a comprehensive solution that would provide real-time visibility and enable dynamic decision-making.

How Quantzig Helped

Quantzig implemented a data-driven approach to optimize the client’s distribution planning, reduce costs, and enhance efficiency. By leveraging advanced analytics, order consolidation, and real-time tracking, we enabled the client to streamline logistics operations and make informed decisions on fleet utilization and 3PL engagements.

1. Advanced Analytics for Distribution Optimization: Identified cost-saving patterns and optimized resource allocation through historical data analysis.
2. Order Consolidation and Route Optimization: Minimized transportation costs by consolidating shipments and optimizing delivery routes.
3. Comparative Decision-Making for Fleet vs. 3PL: Developed an analytics platform to assess cost implications and select the most efficient delivery method.
4. Real-Time Tracking and Dynamic Targeting: Enhanced supply chain visibility, allowing proactive issue resolution and accurate deliveries.
5. Advanced Order Dicing Algorithms: Improved delivery efficiency by analyzing order sizes, distances, and constraints to optimize self-delivery costs.

By integrating these solutions, Quantzig empowered the client with a cost-effective and data-driven distribution strategy, reducing operational inefficiencies and enhancing overall supply chain performance.

Quantitative Impact and Results

Quantzig’s solutions led to a 29% reduction in spike order costs and a 24% decrease in expenses related to 3PL deliveries by optimizing fleet utilization and improving cost visibility. The implementation of order consolidation and advanced route optimization minimized redundant trips, significantly lowering transportation costs while ensuring timely deliveries.

Additionally, the real-time tracking system provided near-instant visibility into the distribution network, allowing the client to proactively address disruptions and enhance delivery accuracy. By leveraging data-driven decision-making and automation, the client improved operational efficiency, reduced financial leakages, and strengthened its overall distribution strategy.

Ending Thoughts

Quantzig’s data-driven approach transformed the client’s distribution strategy, enabling smarter decision-making and cost-effective logistics management. By integrating advanced analytics and real-time tracking, the client gained greater control over its supply chain, ensuring efficiency and sustainability in operations.