Following years of aggressive acquisitions, the beverage giant's local logistics network had become fragmented and inefficient. They operated over a dozen isolated warehouses, each serving different channels: massive supermarkets, convenience stores, and a rapidly growing Direct-to-Consumer (D2C) subscription service. This 'siloed' approach led to massive inventory redundancy, inflexibility, and an empty-mile transport rate exceeding 35%.
Our supply chain analytics team used network modelling and scenario testing to compare consolidation options before changing the physical footprint. Channel silos were reduced by converging toward a smaller set of strategically located fulfilment sites able to handle wholesale pallets, retail case picks, and e-commerce parcels under one transport management approach.
In this illustrative programme, modelling suggested meaningful reductions in logistics cost as a share of sales and in pooled safety stock once inventory was unified—freeing working capital and shortening time-to-shelf for new SKUs. Actual results depend on channel mix, contracts, and implementation scope.
