Delivery operations provide one of the most lucrative areas to find cost savings. The following areas should be evaluated to determine what potential savings exist in your operation. In the past we have found in excess of $1,000,000 per year in delivery savings through our in depth analysis.
Cases/Stop Analysis
With delivery costs exceeding $40/hour, delivering less than 5 cases/stop can result in significant increase in delivery expense. The chart below shows that 2 cases delivered in 15 minutes including travel time results in a delivery cost of $5/case.
The cases per stop chart shows the number of stops below 5 cases/stop as well as an overview of the total delivery operation. Deliveries that average between 25 and 200 cases/hour are excellent candidates for cart delivery in approprate markets.
Service Policy Analysis
Delivery minimums can often be achieved by reducing the number of times that retail accounts are being overserviced. The statistics below show one analysis we conducted that solved the minimum cases per stop problem by reducing the number of stops per month to a reasonable number.
Daily Delivery Variability
Changing service policy is also an excellent opportunity to level daily deliveries. For one client, we were able to eliminate 11 delivery trucks by reducing the peak days and moving account service to earlier in the week. Going to 4 day a week deliveries actually increases the number of delivery trucks and warehouse equipment required.
Cart Delivery System
Cart delivery is one of the fastest growing changes in beverage delivery. It has also been quite effective when implemented in snow regions of the country and also in deposit/return states. We can conduct a delivery analysis to determine what percentage of your deliveries are suited for carts.