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CLIENT CASE – Economic evaluation and cost modeling
Discover how OPM Conseil supported a building materials distributor in evaluating the economic aspects and modeling transport operations: methodology, results, and key benefits.
A company’s financial situation may require a thorough economic evaluation of its operations. This analytical approach aims to understand current costs and practices, and to model the economic benefits of one or more improvement scenarios. It often involves reducing the budget allocated to a specific operation—such as transportation—by adjusting delivery schedules or resources. Based on the selected scenarios, the evaluation defines a clear implementation roadmap with the primary goal of achieving measurable cost savings
Why conduct an economic evaluation?
Client context and challenges in the building materials sector
A building materials distributor wanted to maintain high-quality transport services while reducing the overall transport budget to around 1% of the company’s revenue. An economic evaluation and cost modeling were requested to identify tailored savings opportunities.
Project objectives: Reducing transport costs while maintaining service quality
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Improve customer payment recovery
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Reduce transportation expenses
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Maintain a high level of service quality
Our approach to reducing transport costs and associated budgets
General approach
24 weeks
Key actions
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Inventory of key issues by product families, agency types, customer profiles, and logistics cost centers
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Consideration of business and regional specificities, with comparative analysis
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Calculation of cost prices, modeling of current costs, and simulation of net savings
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Presentation of the roadmap and operational recommendations:
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Adjustment of customer delivery schedules
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Evolution of specialized equipment usage
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Additional proposals for peak and off-peak seasons
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Definition of implementation phases for each improvement initiative
Results achieved
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€14M in net savings
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Intensity of actions adapted to regional characteristics
Considering an economic evaluation for your business?
Talk to our Supply Chain consulting experts
Contact OPM Conseil to discuss your economic performance and transport cost challenges.
We support companies across all sectors in conducting economic evaluations and modeling cost-effective solutions