A global variety store chainSupporting growth and handling local complexity

The challenge: Redesigning the APAC footprint to support growth and handle local complexity

The client is a global variety store chain that has grown significantly. They expanded to APAC, having stores in several countries with an ambition to grow in other markets as well.

To accommodate their rapid growth, they accepted a high cost level; however, to ensure sustainable growth, they wanted to reduce costs.

The approach: 

• A fact pack on the regional setup was established to understand local complexities such as customers, lead time and cost levels.
• A number of scenarios were developed and evaluated by simulating operational cost levels and tied-up capital.
• Based on a solid business case, the future strategic direction of the APAC footprint was defined, including initiatives for how to reduce cost and optimise flow and service.

The impact: Redesigning the APAC footprint and reducing costs

• The client’s APAC footprint was redesigned with a cost reduction of +20% on a yearly basis.
• Tied-up capital on warehouses was reduced by +30%.
• Service was kept at the same level.