Case Study

THE RESULTS

The Productivity Improvement Program implemented by Applied Logistics in all Lucky’s¹ distribution centers generated from the very beginning a productivity gain ranging from 35% to 50%. Every dollar invested by Lucky in this program between 1983 and 2006 generated a ROI of 19 dollars and 54 cents.

The Productivity Improvement Program has generated $9,560,791 in cost savings, which translates into a $9,310,791 incremental net operating profit impact for fiscal year 2005. If one adds the yearly incremental net operating profit impact from 1984 thru 2005, the total cumulative operative cash flow impact on Lucky’s net operating income before taxes generated by Applied Logistics’ Productivity Improvement Program amounts to $96,315,103. The cumulative value impact is $104,155,000. The biggest operating cost savings were realized right after the program installation, in months, not years. These savings have basically financed the rest of the program implementation in the remaining distribution centers.

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¹ The client’s name has been replaced by a fictitious one.

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Testimonials

When it comes to a sophisticated approach to distribution and warehouse management, working with Applied Logistics was a natural. Their systematic approach saved us money and allowed us to run our distribution of nationwide products efficiently. Our partnership benefits all at Lowe's. Joseph Mabry; Executive VP of Logistics & Distribution As one of the largest food & drug retailers in North America, Safeway Inc. is an innovative company founded on a simple value philosophy: taking care of our customers is what Applied Logistics did for us. Reliable and safe distribution and management systems allowed us to maximize our revenue. Jerry Tidwell, Sr. VP Safeway Supply Operations Applied Logistics exemplifies the values of Snap-on. Their strong ability to demonstrate integrity, always respect the company in all situations, promote our teamwork, and listen to our inputs to suggested solutions, has made us value our partnership with Applied Logistics. Over the years our distribution, transportation and warehouse management efficiency has drastically increased due to their innovative software and management process. If you are not using it, you are simply wasting your money! Gary Henning, Operations Development