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The management of an international logistics company wanted to understand, if they should centralize part of the operations from several geographical locations to one. The company decided to engage our team to help build a solid fact base for the decision-making. Special focus was put on understanding the impact on environmental aspects – both from the logistics company’s and its customers’ point of view.
We started by mapping the client’s current operations, and by creating an understanding of the current pain points and future opportunities.
Together with the client, we identified four alternatives for the future network. Each of these was defined in sufficient detail to understand the practical implications and key aspects of the business case analysis.
To ensure future-proof decisions, we took a holistic approach to the business case. Continuous benefits (e.g. efficiency gains) and costs (e.g. added transportation), as well as one-off investments (e.g. ramp-up of new facilities) were naturally analyzed. In addition to these, we considered the environmental viewpoint by embedding elements such as the value of reduced CO2e and impact on recycling rate. Further, we evaluated which option would be the most attractive from the customer point of view, and how could the logistics company help its customers to achieve their own environmental objectives.
The project provided a clear view on what the client’s future network should look like. Our client proceeded with that direction, which helped them achieve savings in both costs and CO2 emissions, as well as clarify the value proposition to their customers to drive sustainable growth.