Streamlining T&D Storeroom and Logistics Operations with SupplyNetIQ
ScottMadden partnered with a large, vertically integrated utility to assess the efficiency of its T&D storeroom and logistics operations.
At a Glance
Strategic Consolidation
Modeled storeroom closure scenarios using a scoring matrix to maintain customer coverage while reducing fixed costs
Data-Driven Labor Analysis
Benchmarked transaction productivity at each facility, setting data-backed targets to improve underperformers
Logistics Efficiency
Matched delivery mode (internal vs. 3PL) and frequency to shipment characteristics, cutting excess mileage and underutilized routes
Challenge
ScottMadden partnered with a large, vertically integrated investor-owned utility seeking to evaluate the efficiency and cost-effectiveness of its transmission and distribution storeroom network. The analysis aimed to determine the geographic value of storerooms based on customer meter coverage, assess operational efficiency through staffing benchmarks, and examine fleet logistics performance, including the balance between internal deliveries and third-party logistics (3PL). The client needed actionable recommendations to increase operational efficiency while preserving high levels of service and customer coverage.
Process
- Engaged stakeholders across supply chain and facilities to understand current operations and validate available operational and cost data
- Collected and analyzed facility characteristics, inventory levels, transaction volumes, delivery fleet GPS data, 3PL usage patterns, and customer meter coverage by geography
- Leveraged a scoring model to evaluate storeroom value, factoring in issue rates, inventory value, and customer proximity
- Scored all facilities and identified opportunities for consolidation without compromising service levels or coverage
- Assessed logistics costs by comparing scheduled vs. actual fleet usage and modeled delivery frequency trade-offs to balance fleet costs with inventory carrying costs
Result
- Identified $900,000 in potential labor savings by benchmarking storeroom productivity and highlighting transaction volume gaps
- Uncovered more than $2 million in facility savings through consolidation of underutilized storerooms while maintaining customer coverage within defined service thresholds
- Discovered $750,000 in potential logistics savings via right-sizing the delivery fleet, refining schedules, and rebalancing internal vs. 3PL delivery responsibilities
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