A major consumables brand who had been using a wholesale distribution strategy came to Metro with a big challenge. Recent evaluations had revealed the potential for significant cost savings and improved market share by switching to a direct to retail model. Not only did creating direct service to customers all over Canada require a complex, ground up transport solution, there was another challenge: how to create trust relationships with 10,000 customers they had never even met.
We began with pure data, creating exhaustive models that considered every variable from geography to workforce to fuel. We were able to discern that even if the company migrated a fraction of its customers to a direct model, the savings were indeed significant. From this point, we created an optimal hub and spoke system that would get merchandise where it had to be, when it had to be there with a level of service that would continue to build trust with retailers.
Within seven months a full transport system was in place and operational. The company has been able to fully realize its savings projections and project its market share, while enjoying an average DIFOT (Delivered In Full and On Time) rating of close 99.5%.