Challenge
For one of Southeast Asia’s largest conglomerates, logistics sat at the heart of its construction materials division. The company relied on the efficient movement of raw materials and finished products to serve a wide and complex customer base. But as the business grew, so too did the complexity of its logistics operations.
Each business unit operated independently, managing its own logistics function in isolation. This decentralized approach created a patchwork of processes and suppliers, with little oversight at a group level. The lack of integration resulted in rising costs, inconsistent service levels, and missed opportunities to leverage scale.
The impact was felt across both commercial and operational fronts. Logistics costs were steadily increasing, visibility across the supply chain was limited, and opportunities for collaboration between business units were not being realized. Without change, the business risked losing competitiveness in a market where efficiency and cost leadership are critical.
Recognizing these challenges, the organization needed to assess its logistics maturity and to build a roadmap for a more efficient, centralized approach.
Approach
A comprehensive logistics maturity assessment was conducted across the organization’s four largest business units. The aim was twofold: to establish a clear picture of the current state of logistics operations, and to design a future-state model that could deliver long-term efficiency and value.
The engagement was structured around three key workstreams:
- Diagnostics and benchmarking – A thorough review of logistics practices across the business units highlighted fragmentation and inefficiencies. Benchmarking against industry standards showed that significant opportunities for savings and improvement were being left untapped.
- Visibility and data analysis – By mapping logistics spend, service levels, and supplier arrangements across the organization, clarity was provided on where inefficiencies and duplication were driving costs higher. The absence of central oversight was revealed as a critical barrier to performance.
- Future-state operating model – Drawing on best practice, a blueprint was developed for a centralized logistics function. This model emphasized integration across business units, improved governance and accountability, and stronger supplier management.
The analysis demonstrated that by moving to a centralized operating model, the organization could achieve substantial efficiencies — with cost savings projected at 49% across logistics operations.
Results
The engagement provided the organization with a clear and compelling business case for change. Key outcomes included:
- A centralized logistics strategy – For the first time, the organization had a cohesive strategy to guide logistics decisions across all business units.
- Projected cost savings of 49% – A centralized model offered significant financial upside, strengthening the company’s competitiveness in the market.
- Improved visibility and control – The new framework enabled leadership to monitor logistics performance more effectively and identify opportunities for continuous improvement.
- A foundation for resilience and growth – By unlocking synergies between business units and streamlining fragmented operations, the company was better positioned for sustainable, long-term success.
For the organization, this was more than a cost-saving exercise. The shift from fragmented, decentralized logistics towards a unified, strategically managed model created a platform for ongoing efficiency, resilience, and growth.
By bringing structure, visibility, and rigor to logistics management, the client was enabled to transform a critical operational function — delivering measurable savings today, while laying the groundwork for tomorrow’s competitive advantage.
This project was delivered by Proxima’s APAC team, under the former brand name, ArcBlue.
