Case Study: a $150 million food manufacturer and distributor improves service and profitability with BDO network optimization

a $150 million food manufacturer and distributor cuts delivery times to 2 days with BDO

The customer, a $150 million food manufacturer and distributor, was recently carved out of a larger entity and needed to establish an independent, optimized supply chain. Facing declining sales and negative cash flow due to service failures and high operational costs, the company engaged BDO's Supply Chain Advisory Team to address these critical network challenges.

BDO performed a comprehensive network optimization and warehouse analysis, leading to a turnaround plan that included redesigning the distribution strategy and implementing a new warehouse management system. As a result of BDO's work, the client doubled its mail order revenue, increased warehouse capability by 30-50%, reduced customer delivery times from eight or nine days to two days, and cut $7 million in operating expenses during the transition, with further savings projected.