Vita Cellular UK case study: keeping costs down

When Vita Cellular UK first approached TDG in 2006, it was with an e-tender invitation. The Vita Cellular UK management team was working with a business consultancy, and had been advised to look for cost savings within their distribution operations. In fact TDG declined this opportunity on the basis that a price war would not ultimately deliver the high service standards and additional value Vita Cellular UK needed to protect and build its established customer base. Instead, TDG recommended taking a holistic view – the only viable route to significant and sustainable cost savings in a market where margins are already very slim with little room to manoeuvre.

TDG predicted cost savings of at least 4% following a redesign of the distribution operation. On this basis, Vita Cellular UK agreed to put TDG to the test.

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