3PL Strategy & Partner Selection

Working with a global fast-food chain on a 10-year supply chain strategy, cost to serve break down and 3PL retender for 700+ store locations.

To discuss how we can help you with similar challenges, please contact Gavin Bowen-Ashwin.

The Problem

  • Already one of the largest fast-food chains in the world, the client had an ambitious growth strategy looking to expand with +50% restaurants within five years.
  • As a result, there was a need for a supply chain which was fit for the future and partners who were prepared to continuously improve their network, bring innovation to reduce cost overtime and ensure delivery was on time and in full to support its growth drive.

The Solution

  • Our team reviewed the supply chain strategy to stress test the current offering and define the future requirements, identifying the needs for a more collaborative partner and one who could meet future sustainability targets, specifically when delivering in London.
  • Several supply chain partners were tendered to validate different cost to serve models, resulting in a major retender of the third-party logistics (3PL) provider to appoint a future partner.

The Impact

  • A complete supply chain strategy review and 3PL sourcing project for 700+ store locations was delivered, identifying distribution options and £2m+ commercial benefits.
  • The operating model was future proofed through initiatives including night deliveries, paperless deliveries, supply chain visibility, hybrid vehicles, waste management and product backhauling.
  • Savings of c8% versus market benchmarks were achieved, while identifying other cost to serve savings throughout the end-to-end value chain, providing improved value to the customer.