May Verpackungen: alphalogs reviews logistics
May Verpackungen, now part of the Ardagh Group, supplies cans for tinned fruit and vegetables, peanuts and whipped cream, with more than ten warehouse locations across Germany. This requires extensive cargo transportation.
alphalogs took charge of logistics consultancy and planning, including reviewing and optimising May Verpackungen’s historic distribution structure. Analyses and outsourcing of the new distribution structure showed huge potential for cost reduction. For example, May Verpackungen was able to record savings of over 20% in its warehouse and 10% in its transport division simply by concentrating its warehouse locations. Avoiding preliminary runs from the production facility to the distribution warehouse, detours/cartage from and between external warehouses, and empty runs was crucial. May Verpackungen paid alphalogs a performance-based fee, which allowed it to reduce its own cost risk. This fee paid for itself within twelve months of the contract being awarded thanks to savings with service providers.