15% cost reduction for building materials supplier Stiho
With a turnover of €100 million, Stiho is one of the largest Dutch suppliers of building materials, wood and board for professional contractors. To distinguish itself from the competition the company not only aims to reduce costs but improve the performance of its logistics operations at the same time. A dual, seemingly incompatible mission.
Stiho calls on the help of CQM
CQM pulled together all the relevant information. Not only of the current situation but also Stiho's ambitions for the future. This data was the input for modeling and analyzing the options for transportation, warehouse operations, inventory and the network structure. The various scenarios were reviewed and analyzed, and presented to the Stiho management.
15% cost reduction while improving service
We demonstrated that a 15% cost reduction is achievable, while at the same time improving service. But this does require some changes. For example, there are savings to be made through better planning of transportation to customers and scrapping a number of internal transport operations. In addition, inventory management must be more sharply controlled and the processes within the warehouse better tailored to market demand.
CQM’s trademark mix of analysis and pragmatism
Stiho’s logistics operations manager, Erik van der Spek: "We’re very happy that we've taken on this challenge together with CQM. They’ve listened closely to our requirements and tackled the project in a structured way. CQM’s trademark mix of analysis and pragmatism has also contributed to a very fruitful collaboration."
Ask your question
Would you like to know more about how CQM can help you achieve cost reduction and/or performance improvement of your logistics operation? Please contact Jan van Doremalen or Monique van den Broek. We are looking forward to your call!