The Supply Chain Consulting Group Optimise Logistics Network For Sofology
Sofology is a specialist sofa retailer with stores across the UK, offering leather, fabric, corner and recliner sofas. Innovating the furniture retail market, their omni-channel business model focuses on providing excellent customer service. With a range of sofas available for express delivery, Sofology source fabrics worldwide and only use 100% natural leather.
Sofology was experiencing a period of fast-paced growth, with a significant increase in turnover and were expecting this growth to continue. Additionally, the business was planning to expand by opening 26 new stores and develop a B2C e-commerce channel over the subsequent three years.
To support increased demand, the Sofology management team required an immediate network review to identify a short-term solution for peak trading. Following this, they wanted to adapt their logistics network based on their long-term strategy, which included new stores and the new B2C e-commerce channel.
Sofology employed The Supply Chain Consulting Group (SCCG) to develop a proposal for modelling the future logistics network. The SCCG team of specialist Supply Chain and Logistics Consultants conducted an initial strategic network review to understand current network flows and processes.
The first phase of the project focused on developing an immediate solution for initial peak trading operations. Short-term solutions included optimising their London warehouse. The consultant team suggested utilising building height to increase storage space, alleviating any capacity constraints caused by a higher number of orders than anticipated.
Following implementation of the short-term solution, the second phase of the project was to develop a long-term solution – optimising the logistics network according to the growth strategy, which included opening new stores and establishing the B2C channel. To gain a full understanding of business requirements, SCCG analysed supply chain data, including sales by SKU by week, delivery volumes, peak throughput and stockholding by distribution centre and reverse logistics requirements.
The experienced consultants modelled network scenarios based on future growth predictions and data analysis of warehouse operating processes and systems. The network optimisation phase established the best fit for distribution centres, hubs and out-bases – determining best locality in terms of supplier/customer proximity.
SCCG presented the finalised optimal logistics network with projected costs and a detailed implementation plan. The consultants collaborated with Sofology to ensure the implementation of an optimal network did not compromise the need to maintain excellent customer service levels.