CASE STUDY # 025
Manufacturing – Distribution
Engagement Focus
Distribution strategy, logistics cost control, customer retention, revenue recovery
The Challenge
The organization experienced a greater than 50% reduction in next-day orders, placing significant pressure on revenue, customer relationships, and competitive position.
Leadership required a rapid assessment to identify the cause and reverse customer attrition.
Key Findings
The decline was traced to a critical operational decision:
- A primary distribution center was closed.
- Fulfillment was shifted to a significantly more distant facility.
- Increased shipping costs were passed directly to customers.
- Customers responded by shifting next-day orders to competitors with more favorable logistics and pricing.
The issue was not demand — it was execution and cost structure visibility.
Corrective Actions Implemented
1. Logistics & Shipping Cost Restructuring
- Renegotiated shipping terms with the existing carrier, securing significantly improved rates.
- Established a secondary shipping partner to distribute volume and increase pricing leverage.
- Used the client’s high shipment volume to improve flexibility, reliability, and cost control.
2. Customer Re-Engagement & Sales Alignment
- Worked directly with district and regional leadership to realign execution.
- Partnered with sales and business development teams to rebuild customer conversations.
- Implemented an updated sales approach and messaging to address pricing concerns and restore trust with customers who had defected to competitors.
Results
Customer & Revenue Impact
- 45% reactivation of previously lost customers.
- 100% acquisition of new customer accounts, with repeat business established.
- Restored competitiveness in next-day order fulfillment.
Operational Performance
- Achieved a 100% order fulfillment rate, improving customer confidence and reliability.
Outcome Summary
Restored competitive positioning
Reversed next-day order decline
Reduced logistics costs through leverage and diversification
Recovered lost customers and won new business
Strengthened fulfillment reliability
Losing customers due to fulfillment, cost, or execution breakdowns?
Start with a Business Execution Assessment.