Our projects

Cost Reduction

Soft Drink Beverage Company.

Client Context

A southern based English soft drinks company was spending too much of the vending department's budget on distribution. The client wanted a better understanding of where the budget was being spent & how it was effecting the profit of the department profitability.

Solution

Davora carried out a complete review of the department & analysed the distribution method of the vending products. Having examined the accounts it was apparent that a portion of the distributions costs were excessive. The client’s geographical area had expanded & high costs were being paid for low value work, as overtime payment was excessive due to the distance being travelled to deliver products.

Davora made a recommendation to set up a distribution depot central to the area where a large volume of business was being done. The result was: A more efficient use of the fleet of vehicles due to a reduction in annual mileage & in distribution costs as fuel purchase & maintenance costs were saved.

The low value work was replaced with an efficient use of human resource & a large reduction in overtime payments.