Company and Project Background
A leading company in the beauty industry was operating independently across major territories such as the United States, the United Kingdom, and Europe. In the UK, the company manages a warehouse spanning through a 3PL provider, on a shared-user basis. In mainland Europe, they operate its own account warehouse in Western Europe, covering approximately over 300,000ft2, which serves across Europe.
The company primarily focuses on business-to-business sales, with a smaller portion of direct-to-customer activity. While the products are similar across the UK and Europe, they require some market customisation.
Objectives of the Project
Following the recent acquisition, the client aimed to optimise its distribution network by identifying synergies between its UK and European operations. The project scope was to assess the costs, risks and opportunities associated with distribution network optimisation. Further phases of the work could be required to support implementation
Initial Situation and Solutions
To initiate the project, our logistics consultants conducted an operational review which included site visits, to gain a deep understanding of client’s business and warehousing requirements. There has been utilised data from the client’s systems, which was providing insights into throughputs, stocking capacity requirements, and the geographical distribution of customer deliveries for both the UK and European businesses.
The Supply Chain Consulting Group has then developed an activity-based cost model considering transport and warehouse costs. The model provided insights into current and future warehousing and transport requirements. Furthermore, the speed-to-market options were evaluated, considering service levels, costs and any customs implications.
Results of the project
The analysis performed by our consultants provided the client with a detailed business case for distribution network optimisation. The final report highlighted the benefits, risks and opportunities associated with each network option. Additionally, an implementation plan with key tasks and timelines was provided to assist the client in transitioning to the preferred network option.
Through resource consolidation and streamlined processes, the company strengthened its market position as a global leader in the beauty industry.
