Cutting Logistics Costs by 25% Through Warehouse Route Redesign
When logistics becomes a cost centre rather than a value enabler, it’s time for a reset. Zyra Consulting partnered with a European chemical company to streamline their warehouse footprint and redesign a high-cost delivery route that had become operationally obsolete.
The Challenge: The client was routing shipments through an old intermediate warehouse (IT04), incurring storage and delay costs. Yet most customer orders were pre-planned — meaning the extra leg was unnecessary.
Our Approach: Applying Lean Supply Chain logic and SAP route visibility, we:
- Analysed AS-IS flows using VSM
- Validated direct shipment feasibility via SAP and carriers
- Designed a TO-BE model with fallback routing only in winter
- Updated SOPs and routed change communication to all stakeholders
The Result:
- 25% reduction in logistics cost for those shipments
- Lead time reduced by 1–2 days
- Full customer service continuity maintained
- IT04 terminal decommissioned from standard routing
What This Proves: A legacy process may not be broken — but it could be irrelevant. We helped the client shift from “the way we’ve always done it” to “the way that saves time and money.”