The company is a leading UK and International multi-channel Sports Fashion retailer expanding rapidly in the EU and beyond within the next 5 years.
Business Challenge
- Business aligned strategy development unlocking Supply Chain improvement potential
- Decoupling of UK and EU networks necessary post-Brexit
- avoid Tax and Duty penalties
- reduce logistics costs
- long lead-times versus the competition
- Legacy supply chain cannot support the planned growth, particularly for online
Approach
The project included the following steps:
- Strategic review and analysis of end to end supply chain costs, flows and capacities
- Co-developed a series of options to support business projections
- Determined the optimum logistics network to service retail stores and online business in 5 years
- Developed a pragmatic implementation plan
- Developed the business case with time-phased cashflows and investment appraisal
Results
- Tax and Duty mitigation equivalent to 6.5% of revenues in scope
- Cost to serve reduction equivalent to 2% of sales versus legacy logistics network
- Retail Next Day service up from 15% to >85%
- Online fulfilment in 2-3 days for almost all of the population, with over 30% Next Day
- Network of hubs and cross-dock locations to reduce transport and CO2 impacts
