Chesapeake Operating Strategies

bringing strategies to life

Distribution Cost and Effectiveness

Costs associated with distribution go far beyond the trucks - when looking for opportunities to improve distribution cost and efficiency, a company needs to consider all of the elements that drive cost and performance.

Typical Engagement

Making decisions around distribution is often a matter of understanding the economic trade-offs of different approaches.  As shown in the integration example below, there are often a number of different ways to reach your customers. Here, an important element of integration synergies may be from either elimination of one of the two warehouses or from reduction of transportation costs due to proximity of the warehouse to the customer.  Once we build an understanding of the resulting economics of each option, a path forward can be set with confidence.