Improving Margin, Releasing Pressure In A Distribution Business
Client Situation
A distribution business was struggling to meet late-day order demand. Most customer orders arrived towards the end of the working day, forcing the warehouse to bring in extra staff for just a few hours to keep up. All orders were being sent on a next-day delivery service — the only option available due to the firm’s location — which created unnecessary cost and pressure.
Approach
Getting customers to order earlier wasn’t realistic: in this industry, specifications are confirmed during the day and sent to suppliers late afternoon. Instead, we worked with the sales, warehouse, and operations teams to understand customer needs more deeply and identify where flexibility existed.
Actions
Conducted cross-team workshops to review fulfilment patterns and customer expectations
Analysed delivery timing requirements across different customer segments
Designed and implemented a tiered delivery service offering greater choice and control
Updated systems and processes to support multiple fulfilment cycles
Introduced small surcharges for urgent next-day deliveries, aligned with customer value perception
Outcome
The business achieved:
Over 1% net profit increase from delivery charge revenue
One full-time equivalent cost saving through reduced warehouse headcount
Smoother daily operations and better alignment between customer need and internal capacity
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