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Cost Reduction Case Study

Soft Drink Beverage Company

CLIENT CONTEXT

A southern based English soft drinks company was spending too much of the vending departments budget on distribution. The client wanted a better understanding of where the budget was being spent & how it was effecting the profit of the department.

     DAVORA SOLUTION

      Davora carried out a complete review of the department & analysed the distribution method       of the vending products.             Having examined the accounts it was apparent that a portion of the distributions costs were       excessive. The client’s geographical area had expanded & high costs were being paid       for low value work, as overtime payment was excessive due to the distance being travelled to       deliver products.             Davora made a recommendation to set up a distribution depot central to the area where a       large volume of business was being done. The result was:       A more efficient use of the fleet of vehicles due to a reduction in annual mileage & in       distribution costs as fuel purchase & maintenance costs were saved.         The low value work was replaced with an efficient use of human resource & a large reduction       in overtime payments.  
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