Multinational wholesale cash & carry chain with distinctive business concept oriented towards helping professional customers to successfully run their own businesses. The wholesale company strives to be championing the passion, ambition, creativity and flexibility of independent business.
Challenge
The scope of the project included 93 stores, 1 distribution and 3 fulfilment centres. Our main task included researching and optimising entire supply chain network based on 2 scenarios – only utilising existing DCs or opening additional fulfilment centres, as required by best case scenario.
Solution
Our team put together all available data points from POS, supply chain transport, as well as local and governmental conditions. With this data-centred approach, we created over 25 scenarios running a selection of DC locations and several variables affecting results – capital investments in DCs opening, additional fixed & variable operational expenses with each new DC opening, transport network increase in new locations.
Results
Our complete analysis defined new network development strategy with potential of reducing fixed storage expenses by 18.6%, through moving rented fulfilment centres to 3 owned facilities.