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Logistics optimization: cost reductions
Center of Gravity analysis and logistics tendering at Hitschler
Hitschler, a medium-sized family company in the confectionery production sector, optimized its logistics processes with valantic through a detailed center-of-gravity analysis and selected a new logistics service provider. As a result, logistics costs in the six-figure range were saved over five years and product and service quality were increased without price increases due to the switch to refrigerated transportation.
About the company
Hitschler was founded in 1929 and has its headquarters in Hürth near Cologne. The company operates in the confectionery industry and is best known for products such as Hitschies, sour dragon tongues, and chewy sweets. Hitschler places great emphasis on quality, innovation, and sustainability — for example, by switching to recyclable packaging and eliminating palm oil from many of its products. The company employs over 100 people and primarily manufactures in Germany. Its products are sold through food retailers, online stores, and international distribution partners across various European countries.
The project
The challenge
Hitschler was faced with the challenge of an expiring contract with the existing logistics service provider and a price increase when the contract was extended. The confectionery production took place at several locations in Europe. These included Germany, Belgium, the Netherlands and Slovenia. In addition, production relocations and insourcing activities were planned, which made it necessary to adjust the existing cost and logistics structures.
Consulting approach
- Execution of a “Center of Gravity” analysis:
- Determining the optimal warehouse location in terms of costing to minimize logistics costs and increase efficiency.
- Analysis and cost evaluation of logistics processes:
- Examination of inbound transportation processes, warehouse logistics and outbound transportation processes, including complex value-added services (VAS).
- Logistics tender:
- Preparation and implementation of a comprehensive tender (NDA, RfI, RfP).
- Quantitative and qualitative evaluation of the bids to identify key cost drivers.
- Development of an evaluation model that takes into account both quantitative and qualitative criteria.
Solution and customer benefits
By switching to a logistics service provider located near the optimal center of gravity, Hitschler was able to save a high six-figure amount in logistics costs over five years. In addition, product quality was significantly improved by switching to refrigerated transportation without any price increases. Service quality improved thanks to the connection to a renowned general cargo network in the food industry.
Conclusion
The Center of Gravity analysis and logistics tender at Hitschler led to significant reductions in logistics costs and increased efficiency in the supply chain. The change of logistics service provider and the optimization of processes sustainably improved product and service quality. These measures will strengthen the company’s competitiveness in the long term.
Your contacts
Dr. Bernhard Höveler
Partner & Managing Director
valantic Supply Chain & Procurement Consulting
- Cost optimization
- Organizational development
- Strategic Negotiations
- Procurement transformation
Jan Laakmann
Partner
valantic Supply Chain & Procurement Consulting
- Sustainability strategy & roadmap
- ESG reporting (CSRD)
- Social supply chains (LkSG, EUDR, CBAM)
Dennis Goetjes
Partner
valantic
- Supply Chain Management
- Sales & Operations Planning
- Supply Chain Configuration
- SCM-Organisations