Case Study: Flogas achieves optimized distribution network and reduced cost-to-serve with Körber AG’s K.Sight COST2SERV

Flogas - Customer Case Study

Flogas, one of the UK’s largest suppliers of LPG, faced a rapidly expanded and fragmented distribution network after two acquisitions left it with a mix of third‑party facilities, legacy depots and widely dispersed customers—particularly challenging during peak winter demand. To objectively validate network changes and model true cost‑to‑serve, Flogas engaged Körber AG and its K.Sight COST2SERV Network Strategy tool.

Körber AG ran a four‑month programme building a base‑case model and using mathematical programming plus a new clustering algorithm to run “what‑if” depot‑closure and routing scenarios that captured full supply‑chain costs. The work identified redundant depots, driver reassignments and target customer segments, provided validated evidence for change, and is projected to deliver about a 5% reduction in total distribution costs with rapid payback; Flogas will continue to use K.Sight COST2SERV both with Körber AG and independently.

Flogas

James Rudman

Business Development Director