A major efficiency driver for alc/bev organizations is shipment consolidations to distributors and field marketing teams. One of IMS’ Fortune 500 beverage clients had yet to implement a consolidator program, resulting in distributors and field teams ordering materials just in time, driving numerous (and costly) shipments that were difficult for the distributors to track and manage.
Client Case Study
Big Beer Consolidator Delivers $15M Savings
Project Details
To achieve more efficient consolidation, merchandising orders for an end-user or location would need to be aggregated during a specified timeframe and then picked, kitted, and distributed in a single shipment. Our client’s in-house fulfillment center did not have the right systems, ISO processes, or personnel to implement a program on this scale.
IMS applied best practices learned across other Fortune 500 beverage and alcohol clients to implement a consolidation program with the client marketing team to drive cost efficiency while making it easier for distributors.
Outcome
Field orders by specific distributor or sales reps were consolidated on a specified cadence, resulting in single, large shipments of varied items across varied products and programs for the distributors to execute in the field. IMS systems, ISO certified consolidation process, and experienced staff worked in concert with our client to implement the program.
In Year 1, shipments were ultimately reduced 78%, resulting in seven figure savings. To date, the program has delivered over $15 million in cost savings and avoidance for this brewing powerhouse.
78
reduction in number of shipments within the first year of the program
$15M+
client has saved over $15M through the consolidator programs since launch
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