Logistics Pricing Study for Argentina
Our client, a multinational manufacturer of personal and home care products suspected that it was overpaying on distribution costs in Argentina. It wanted to unpack competitors’ distribution costs and benchmark its performance against an optimal distribution model. It hired Americas Market Intelligence (AMI) to uncover competitors’ logistics costs and strategize toward cost optimization since AMI had significant experience in pricing research and competitive intelligence within the Latin American logistics space.
With the help of the client, using secondary research and interviews with local distributors, AMI first designed an optimal distribution cost structure against which to compare the client’s and competitors’ distribution costs. Then, AMI consultants conducted interviews with four different competitors to understand the distribution strategies and associated costs.
AMI prepared a report with the findings of secondary and primary research which displayed specific areas where the client was overspending in comparison with competitors and the optimal model developed. AMI provided actionable recommendations for the client to negotiate with distributors and make changes internally to reduce costs. If successfully implemented, estimated savings will result in 10-15%.
AMI provided the client with a benchmark analysis of its distribution cost structure by uncovering competitors’ expenditure on logistics and distribution, as well as strategic recommendations on how to cut costs.