A variety store chainSupporting rapid business expansion

The project: Strategic warehouse footprint review to support rapid business expansion

The client is a variety store chain expecting to triple the total number of outbound pallets in just five years. They have high inventory levels driven by a complex assortment with monthly campaigns introducing 300+ new SKUs every month.

The client saw their warehouses in the EMEA region struggling to keep up with the demand of a fast-growing business.

Therefore, they started a project using an approach that included:

• A fact-driven approach establishing the current baseline across functions and a simulation of future warehouse requirements based on growth and campaign flow.
• Exploration of scenarios for warehouse locations, numbers and policies through consequence simulation of growth, inventory levels and cost.
• Selection of the optimal scenario to support the client’s overall strategy and development of an implementation roadmap.

The impact: Reduced inventory levels and improved warehouse footprint

The project resulted in implementable initiatives and policies to reduce inventory levels by up to 30% and create equilibrium in flow, postponing critical capacity shortage by one year.

Furthermore, it created a roadmap of an improved warehouse footprint with improved costs, including timing and deadlines for key strategic decisions.