Nordex Food is a dairy company specializing in the production of white cheese. Our cheeses are produced at dairy facilities in Denmark, Austria and Romania. We export some 97 % to countries throughout the world but mainly to European and Middle Eastern countries. Our total freight costs amount to approximately € 4 million.
Nordex Food wanted to have their distribution and goods flow analysed.
New set-up to EMEA
The new potential set-up, which was to be analysed, showed a clear advantage of establishing a storage function in Germany (Ruhr) close to the clients and applicable to smaller client orders. Larger orders were still to be delivered directly from the dairy facilities in Denmark, Austria and Romania.
One of the aspects of the new system up for evaluation was whether or not the clients would accept deliveries from both Denmark and Austria (splitting one order into two deliveries) without compromising their experience of the level of quality. In addition, freight flows, client numbers and order volumes were analysed before any conclusions were drawn.
The results showed that the existing set-up was more expensive than a new set-up with a decentralised storage facility.
Together with CostPartner we decided to draw up a transport tender which described the existing set-up in order to be able to clearly compare the two solutions.
The tender procedure resulted in the financial burden of the existing freight solution being reduced to a similar level of that of the new set-up.
Alternative set-up saving money
Now, we have an alternative set-up that future-proofs the existing cost level, leaving us with two years to establish an external storage facility.
Deputy director at Nordex Food, Egon Sørensen, praises the co-operation with CostPartner:
“We are extremely satisfied with the work presented by CostPartner and we have high expectations towards our future co-operation. CostPartner has added competencies that we do not have internally. In particular, the IT tools applied by CostPartner have provided us with the possibility to analyse enormous amounts of data and make precise impact studies.”
We have optimised some internal processes, and in fact, the work of CostPartner has also led to our haulers optimizing their processes. In this way, the savings have not only emerged from our haulers being challenged in terms of the price, but primarily due to overall optimisation procedures.
Savings of EUR1.6 mio+
Now, we have a much better overview of our freight structures and the quality has definitely not been reduced. With estimated savings of more than € 1.6 million during the next two years, we are bound to be satisfied”, says Egon Sørensen.