Optimization of logistics processes

Bell Food Group: Inbound logistics optimization

The Bell Food Group is one of the leading manufacturers of meat and convenience products in Europe. With annual sales of over CHF 4 billion, the company relies on efficient logistics to remain competitive.

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About the company

Logo Bell Food Group

The Bell Food Group is one of Europe’s leading processors of meat and convenience foods. Founded in 1869 in Basel, the Group today comprises business units such as Bell Switzerland, Bell International, Hubers/Sütag, Eisberg, Hilcona and Hügli. With strong brands including Bell, Hubers, Eisberg, Hilcona and Hügli, it offers a broad portfolio of meat, poultry, charcuterie, seafood, as well as convenience and vegetarian products. Its customers span retail, food service and the food industry. Around 13,000 employees at approximately 70 sites across 13 European countries are committed every day to delivering quality and enjoyment.

The project

The challenge

  • Decentralized delivery to 15 production plants, in some cases by the same suppliers.
  • High number of small delivery quantities, which caused inefficient flows of goods.
  • Insufficient use of synergy potential within the 5 business divisions and locations.
  • No uniform approach to optimizing the cost structure in inbound logistics.

Consulting approach

valantic’s logistics and supply chain experts carried out a comprehensive analysis and developed a strategic optimization approach based on sound data and a robust business case.

Approach:

  1. Analysis of the initial situation:
    Examination of the existing warehouse and delivery structures.
    Detailed evaluation of delivery relationships, quantities and frequencies.
  2. Simulation of scenarios:
    Calculation and evaluation of scenarios with exact cost rates
    Consideration of different delivery structures, sizes and frequencies for all suppliers.
  3. Outsourcing vs. in-house performance:
    Comparison of the advantages and disadvantages of an outsourcing model compared to in-house services.
  4. Creation of a business case:
    Determining the optimal warehouse size and its impact on resources (FTE).
    Inclusion of relevant locations and selection of the suppliers concerned.

Solution and customer benefits

The centralization of inbound logistics has resulted in significant efficiency gains and cost reductions:

  • Cost optimization: savings in the high double-digit percentage range for relevant materials and supply relationships.
  • More efficient flow of goods: consolidation of small delivery sizes and optimization of delivery frequencies.
  • Group-wide synergy effects: Better use of economies of scope between the 5 divisions and locations.

The successful implementation of this project underscores valantic’s expertise in the area of logistics and supply chain optimization. The Bell Food Group was not only able to transform its inbound logistics, but also create the basis for long-term efficiency gains.

Your Contact

Dr. Bernhard Höveler, Managing Partner, HÖVELER HOLZMANN – a valantic company

Dr. Bernhard Höveler

Partner & Managing Director

valantic Supply Chain & Procurement Consulting