Distribution
From eight locations to a well-founded European network
For Biscuit International, we streamlined a fragmented European network into clear choices for warehousing and transport, delivering an estimated savings potential of approximately 12%.
1. The client and the challenge
Biscuit International operates an international warehousing and transport network that brings together its own facilities and external logistics partners. Across the examined European regions, operations were spread across eight locations, with varying contracts and regional approaches. As a result, a clear overview of total costs and opportunities to optimize the network was missing. The assignment: map the network as a whole, compare future scenarios, and provide a solid business case for the setup that delivers the greatest value.
Core pain
How do you determine the best design for a fragmented European network when costs, capacity, and contracts vary by region? Without a single source of truth, savings opportunities remain hidden and strategic choices are difficult to justify.
2. Our approach
We collected and validated operational and financial data from internal locations and 3PL partners. Using this baseline, we modeled various network designs to evaluate costs, transport mileage, and efficiency. We translated the findings into a preferred setup supported by a quantified business case. Finally, we developed the implementation roadmap, complete with milestones, ownership, and a clear project structure.
3. The diagnosis
The analysis highlighted where consolidation and a reallocation of goods flows could add value. For Western Europe, the modeled scenario pointed to a reduction from eight to four distribution centers, with an estimated 14% savings potential on the total cost base. Smarter routing and higher load factors for outbound transport were key levers in achieving this. For Germany, consolidating the network and renegotiating 3PL agreements revealed roughly 10% potential, primarily through bundling inbound flows.
4. From insight to execution
The scenario study provided not only a preferred direction, but also an objective foundation for decision-making. The next steps have been detailed in an implementation plan, complete with a business case for each workstream, concrete milestones, and clearly defined responsibilities. This ensures that execution can begin based on an approved plan rather than disjointed regional initiatives. Further operational improvements will follow as an ongoing process.
5. The result
The business case distinguishes between the immediate potential from the network design and additional opportunities in a follow-up phase. The calculated network plan ('Atlas') represents approximately 3.5% in potential savings: over €1 million per year. On top of that, an additional potential of around 8.8% has been identified through measures such as contract renegotiations, higher load factors, and delivery optimization.
approx. 3.5%
Directly calculated potential · more than €1 million per year
approx. 8.8%
Additional potential · more than €3 million per year
approx. 12%
Total calculated potential · more than €4 million per year
Together, this amounts to an estimated annual savings potential of approximately 12%: more than €4 million. Realization depends on the selected measures and implementation; the additional potential requires a separate follow-up process. The regional percentages have a different cost base and should not be added together.
6. Next step
A project group and organizational structure have been established, enabling Biscuit International to independently pursue further optimization. The substantiated scenarios, business cases, and implementation roadmap provide direction for the choices ahead. N&J Connect remains available as a remote partner, allowing the organization to purposefully build on the insights gained.