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Supply Chain Strategy in a Clothing Retailer Achieves Identified c. € 3,5m of Operational Cost Savings

The customer is a leading UK high street value clothing retailer, employing more than 70,000 people in 14 countries.

Business Challenge

  • Improve supply chain capability to handle the business expansion plan
  • Eradicate delays at seaport in the supply chain
  • Ameliorate DC capacity issues during peak period
  • Improve flow process for store expansion program
  • Reduce third party logistics operational cost for current DC and transport to store

Approach

The project included the following steps:

  • Strategic review and analysis of End-to-End supply chain costs, flows and capacities
  • Range and category analysis assessment of store service priorities
  • Developed options aligned to business projections
  • Identify a business case, costed solution, savings equivalent to 1.5% of sales

Results

  • Phased 5-year supply chain migration plan with NPV of € 350m
  • € 3,5m operational cost savings identified
  • 10-12 days potential LT reduction on fast fashion garments
  • Developed a prioritized operational and store improvement program

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