Logistics
Cross-Border RDC/LDC/Distribution Implementation
Designed and implemented an international distribution network with regional and local distribution centers to enable scalable cross-border logistics.
Industry
FMCG, Retail
Direct/Indirect
Direct
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Sourcing Context & Procurement Challenge
As the business expanded across Europe, its logistics network became inefficient and inconsistent. Local warehouses operated independently, driving up inventory and freight costs. The procurement challenge was to create a harmonized network of Regional Distribution Centers (RDCs) and Local Distribution Centers (LDCs) that could scale and flex with demand.
Procurement Objectives & Strategic Levers
Objectives included >15% cost reduction, >25% improvement in service levels, and enhanced cross-border delivery capability. Strategic levers involved warehouse consolidation, 3PL partnerships, and route-to-market redesign. The goal was to replace country-by-country distribution models with an integrated European footprint.
Sourcing Strategy & Execution Approach
Procurement mapped all SKUs and delivery routes, collaborating with Supply Chain and Sales. Strategic 3PLs were sourced to operate the new RDCs with performance-based contracts. We introduced TMS (transport management system) tools and implemented harmonized stock visibility. Regional inventory pooling reduced safety stock and allowed dynamic reallocation.
Results & Values Delivered
Logistics costs dropped by 8%, service levels increased by 29%, and delivery lead times were reduced by an average of 1.5 days. Inventory at local levels declined by 22% through pooled planning. Customers reported higher reliability / availability and improved order fulfillment accuracy.
Role & Contribution
We led the cross-border logistics sourcing strategy, ran the tender for 3PL partners, and negotiated all master logistics agreements. We worked closely with the VP Supply Chain to ensure that network design and commercial terms were aligned. Our role extended into performance tracking and quarterly business reviews post-implementation.
Conclusion & Reflections
Logistics sourcing is strategic infrastructure – not just transactional spend. This project confirmed that intelligent design of distribution networks creates long-term value. The lesson: don’t optimize trucks – optimize the network. Procurement’s role is to challenge operational legacy with scalable logic.