Consumer Goods
Regional Logistics Network Optimisation
Outcome
18% logistics cost reduction | On-time delivery 82% to 91%
Pune, MaharashtraRead
Renewable Energy Procurement, 31% Cost Saving
The Challenge
This reflects the type of challenge our consultants are built to solve, drawn from real industry experience. Energy represented 19% of the company's total operating costs, and grid power had risen 28% over three years. The CFO had set a 15% reduction target and handed it to the operations team, a team with deep expertise in textile manufacturing and almost none in energy procurement. The gap between the target and the team's current capability wasn't small.
The Approach
An energy audit across three plants identified peak-load patterns and contractual inefficiencies that the company had been paying for without realising. A competitive tender was structured for rooftop solar across two sites. A Power Purchase Agreement was negotiated for the third, a structure the operations team hadn't previously considered because they didn't know it was available at their consumption scale.
The Outcome
Total energy cost fell by 31% within twelve months, more than double the CFO's 15% target. Carbon emissions from energy use fell 38%, which also satisfied an ESG reporting requirement the sustainability team had separately been trying to address. The CFO's reaction, in the operations director's words: 'I told you 15% because I thought that was the ceiling.'
31% energy cost reduction (target was 15%) | 38% reduction in energy-related carbon emissions
-31%
Energy Cost Saving
-38%
Carbon Emissions
2x target exceeded
vs. CFO Target
Client
Large textile manufacturer
Sector
Manufacturing / Energy
Location
Gujarat
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