Cost Optimization Case Study: Optimizing the Costs of the Central Supply Chain of a DIY Retailer -

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Home / Business Cases

Overview

Our client, a DIY retailer, wants to optimize the costs of its central supply chain to offer an optimized service to its network of franchise stores and enable its eCommerce business to bloom.
KEPLER offers the study and costing of different logistics scenarios to determine the target network design that will maximize service, while optimizing full costs.

Context

Network of 300 stores mainly supplied directly (70%) and with little storage capacity
Central logistics organized around 2 regional platforms for national ranges and a central platform for overseas imports and promotional batches
Regional platforms almost saturated (occupancy rate > 95%) with performance levels below the productivity benchmark for the sector (supply cost > 15% COS)
A strong development challenge for e-commerce amounting to date barely 1% of turnover

Objectives

Category: Improving Responsiveness and Securing Availability

Determining the brand’s network design

Cost mapping, used as a baseline for projecting scenarios, allowed us to identify short-term opportunities for cost improvement. We validated a 2-step path, with a first phase of “quick” earnings that did not require any breach in the organization. This allowed our client to build their transition more comfortably, with a better business visibility, compared to CAPEX to be committed.

COMPLETE VERSION

Discover the methodology, tools and results supporting this business case

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Business Cases
Optimizing the Costs of the Central Supply Chain of a DIY Retailer

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