Glup SA
Glup SA supplies a range of household soaps to supermarkets in northern Europe. There are 12 stock-keeping units (skus) in the range. The logistics manager has determined that an investment of 0.5 million on improved material-handling equipment would convert the main distribution centre into a more flexible facility. A number of benefits in improved product availability have been identified – but cur-rent information is largely in the form of discretionary costs. Glup’s assessment of the benefits and its plans to convert the justification into engineered costs are outlined below.