Horizon Distributors - Business Consulting Project


Project Details

Project Client: Horizon Distributors
Project Description: Cost/Benefit Analysis
Students: David Chan and Taylor Hart
Term: Spring 2012
BCIT Program: Business Operations Management
Horizon Distributors is Western Canada’s largest distributor of organic and natural food products in the dry, chilled, and frozen categories. They thrive to become the market leader with effective partnerships and primary relationships with their suppliers and vendors. This report was commissioned by Horizon Distributors, in order to investigate the feasibility of co-shipping with their subsidiary company, Christmas Natural Foods (CNF) to their shared customers within the lower mainland and Vancouver.

Currently, Horizon Distributors and their subsidiary company CNF are operating out of the same facility, where they share both office space and warehouse facilities. 65 customer locations are shared in the Lower Mainland, making up 45% of Horizon’s total sales and 24% of CNF total sales.

The purpose of this study and the report is to help discover areas for improvement and make recommendations on co-shipping procedures at Horizon Distributors by: developing a standardized procedure for co-shipping between Horizon Distributors and CNF through process mappings, using the standardized co-shipping procedure to reduce shipping costs, and develop a cost benefit analysis.

After analysis of the data, the solution the team has recommended will result in the $9,556.16 annual cost savings for Christmas, and $4,559.63 Horizon annual sunk cost recovered, when focusing just on the “Choices” stores; or $20,481.46 annual cost savings for Christmas, and $9018.10 Horizon annual sunk cost recovered from the 65 shared customer view.