The Wine Mail Order Company DIVO
WALK LESS TOWARDS SUCCESS
Our client DIVO is a well-established wine mail order company in Switzerland. 17 employees search for new and remarkable wines and cultivate exclusive relationships with the best wineries in Europe and 15,000 customers. Approximately 80 % of the annual turnover of 7 million Euros is achieved through direct sales to club members.
Outstanding Expertise Meets Increasing Operating Costs
Despite outstanding market expertise, the high operating costs and declining sales threatened further commercial success in the contested mail order sector. Our client asked for support in planning and implementing a lean management system and an efficient logistics solution to successfully compete against the powerful logistics networks of Coop and Mövenpick.
Enforcing A Lean Logistics Management
After an in-depth evaluation stage, we decided to focus on restructuring the logistics management. The intention was to streamline the use of available resources.
In order to quickly optimize cash flow, the team focused on quick wins at the start of the project, such as initiating sales promotion measures in the shop and consolidating and reorganizing the distribution system.
The installation of indicators enabled transparent control of all relevant business processes. After analysing the key figures, the team began redesigning inventory management: a new lean warehouse zone management system increased storage and retrieval efficiency and reduced walkways.
A detailed examination of current delivery route data revealed further potential for optimization. The redesign of the routes increased the occupancy rate of the vans and reduced the total number of journeys by 17 %.
Further cost reductions were achieved by consolidating and outsourcing delivery routes and negotiating with logistics partners.
- 6 percent increase in EBIDA
- CHF 400,000 cost savings
- 26 % improvement in costs that could be directly influenced within the project scope
You want to optimize your logistic processes? Then let's talk about some new ideas.