Lower cost-to-serve, without breaking service.
Services delivered under supply chain optimisation
We work across the full end-to-end chain, but every engagement is scoped around the two or three areas that will move the P&L or the balance sheet fastest.
Freight and logistics cost reduction
- Parcel, pallet and full-load carrier benchmarking and re-tender
- Mode shift analysis - road, rail, ocean, air - by lane and product
- Lane redesign, backhaul recovery and consolidation opportunities
- Fuel surcharge, accessorial and demurrage governance
Warehousing and 3PL
- 3PL rate benchmarking, renegotiation or competitive re-tender
- In-house vs outsourced warehouse decision modelling
- Footprint rationalisation - consolidating duplicate or sub-scale DCs
- Warehouse layout, slotting and labour productivity review
Inventory and working capital
- Safety stock right-sizing by SKU against real service-level targets
- SKU rationalisation and slow-mover clearance
- Min/max, reorder point and cycle-stock policy redesign
- ABC/XYZ segmentation and differentiated stocking rules
Network design and distribution
- Number, location and role of distribution centres
- Service tier segmentation - next-day, standard, economy
- Direct-to-customer vs stocking-location trade-offs
- Post-M&A network integration
Inbound and supplier flow
- Delivery terms, MOQ and packaging renegotiation with suppliers
- Inbound consolidation and milk-run design
- Incoterms review to shift cost and risk appropriately
- Dual-sourcing and resilience planning for critical inputs
S&OP and demand planning
- Forecast accuracy diagnostic and root-cause fix
- Monthly S&OP cadence, roles and decision rights
- Demand-supply reconciliation and exception governance
How we work
We start with a two-week diagnostic: flow mapping, cost-to-serve by channel and SKU, carrier rate benchmarking, and inventory health. That produces a prioritised list of initiatives with sizing, effort and payback for each. We then run initiatives in short waves so cash starts landing early, and every change is instrumented so service KPIs are visible before, during and after.
Typical outcomes
- 8-15% reduction in logistics cost
- 10-25% inventory reduction with equal or better availability
- Warehousing cost aligned to current volumes, not historical peaks
- Shorter, more reliable lead times on critical categories
Supply chain cost reduction: where the money usually is
When we run a supply chain cost reduction programme for a UK mid-market business, the savings almost always cluster in the same places: freight rates that have drifted above market, inventory carried against demand patterns that no longer exist, and warehouse footprints sized for a peak that never repeated. Sequencing matters - we go after the fastest-payback wave first, then reinvest capacity into structural work.
Supplier consolidation - done properly
Supplier consolidation is a lever, not a strategy. It works when a category is genuinely fragmented, when the remaining suppliers have capacity, and when there is a fallback plan for the concentration risk you take on. It fails when it is used as a blanket target or when volume is moved before qualification is complete. We size and sequence consolidation category by category.
Supply chain resilience
Resilience is a design choice - where you hold buffers, how many suppliers you keep warm, and which risks you are prepared to wear. For most UK mid-market businesses that means targeted dual-sourcing on 5-15 critical inputs, capacity buffers on volatile categories, and a quarterly supplier risk cadence rather than blanket nearshoring or across-the-board stock increases. Our supply chain resilience guide covers the full playbook.
Supply chain review
A Caventis supply chain review is a two to three week diagnostic. It covers cost-to-serve by channel and SKU, carrier benchmarking, inventory health, supplier concentration and network fit - and outputs a prioritised initiative list with sizing, effort and payback. It is designed to be actionable, not a shelf-ware report.
Supply chain sits alongside procurement, product sourcing and cost reduction as one of the six pillars we work on.
Frequently asked questions
What does supply chain optimisation actually cover?
It covers every cost and service lever between your suppliers and your customers - freight and logistics, warehousing, inventory, network design, S&OP and inbound flows. A Caventis programme picks the two or three levers with the largest payback for your business rather than trying to rebuild the whole chain at once.
How do you approach supply chain cost reduction without hurting service?
We start with a cost-to-serve view by channel and SKU, then act on the two or three levers with the largest payback - typically freight re-tender, inventory right-sizing and network rationalisation. Service KPIs are instrumented before, during and after every change, so the trade-off is visible rather than assumed.
What does a supply chain review involve?
A Caventis supply chain review is a two to three week diagnostic covering flow mapping, cost-to-serve by channel and SKU, carrier benchmarking, inventory health, supplier concentration and network fit. The output is a prioritised initiative list with sizing, effort and payback - not a 200-page report.
When does supplier consolidation actually work?
Consolidation works when you have real fragmentation in a category, when the remaining suppliers have capacity, and when you have a fallback for the risk you take on. It fails when it is used as a blanket policy or when volume is moved before qualification is complete. We size it category by category.
How do you build supply chain resilience for a UK mid-sized business?
For UK mid-market businesses, resilience usually means targeted dual-sourcing on 5-15 critical inputs, capacity buffers on volatile categories, and a quarterly supplier risk cadence - rather than blanket nearshoring or across-the-board stock increases. See our supply chain resilience guide for the full playbook.
Will cutting inventory hurt customer service?
Not when it is done properly. Most businesses hold safety stock built for historic demand patterns, not current ones. Right-sizing by SKU using real service-level targets typically frees 10-25% of working capital while holding or improving on-shelf availability.
How long does a supply chain optimisation project take?
A diagnostic runs 2-3 weeks. Freight and 3PL renegotiation waves take 8-12 weeks. Network redesign or warehouse consolidation runs longer - typically 6-9 months from decision to move. We sequence work so cash starts landing inside the first quarter.
Do you handle 3PL selection and renegotiation?
Yes. We benchmark current 3PL rates, redesign the service specification, run competitive tenders and negotiate the contract - or renegotiate the incumbent where switching cost is higher than the delta. Same process for parcel, pallet, FTL, ocean and air freight.
Related services
Specialist areas that complement this work.
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