Cost Reduction Case Study
Soft Drink Beverage Company
CLIENT CONTEXT
A southern based English soft drinks company was
spending too much of the vending departments
budget on distribution.
The client wanted a better understanding of where
the budget was being spent & how it was effecting
the profit of the department.
DAVORA SOLUTION
Davora carried out a complete review of the department & analysed the distribution method
of the vending products.
Having examined the accounts it was apparent that a portion of the distributions costs were
excessive. The client’s geographical area had expanded & high costs were being paid
for low value work, as overtime payment was excessive due to the distance being travelled to
deliver products.
Davora made a recommendation to set up a distribution depot central to the area where a
large volume of business was being done. The result was:
A more efficient use of the fleet of vehicles due to a reduction in annual mileage & in
distribution costs as fuel purchase & maintenance costs were saved.
The low value work was replaced with an efficient use of human resource & a large reduction
in overtime payments.
A Romanian Property Company since 2004