© 2011 Sixhills Consulting Ltda. Reconfigure Demand SpecificationDetailed analysis of each category enables identification of lower cost alternative products which meet organisation needs. In this small freight case, increased use of a guaranteed next-day delivery ground service was selected as an alternative to prevalent use of air service, contributing to identified savings of 21%50851510173182Case Study: Small Freight18224723255510CurrentTarget - Based onReal NeedsNext AM AirNext PM AirSecond Day AirGuaranteed Ground ServiceNext AM AirNext PM AirSecond Day AirGuaranteed Ground Service1. Current and Target Services UtilisedUS$ M2. Results• Policy standardised across locations• Savings of $2.8 million per year– $1.9 million in distribution centres– $0.9 million in office mailrooms• Savings equivalent to 21% of baseline spendNext AM AirNext PM AirSecond Day AirNext AM AirNext PM AirSecond Day AirGuaranteed Ground ServiceProduct Dispatch Distribution CentresOfficeMailroomAggressive SourcingP7
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