Case Study | Supply Chain Optimization for Fashion Retailer

CLIENT

Fashion Retailer

INDUSTRY

Retail

CONSULTANT ROLE

Supply Chain
Consultant

LOCATION

Germany

The Challenge

Inefficient Supply Chain Operations

The client, a fashion retailer based in Germany, recently launched a supply chain optimization project to boost operational efficiency and allow cost savings. Retail customers demand faster delivery and more convenient pickup processes, making supply chain efficiency the number one priority for the client.

“We want to get our products to customers on time, every time. However, with many physical stores and a growing eCommerce platform, the supply chain is getting increasingly complex.” — Head of Logistics

For the project, the client had an existing consulting team and sought specific support from a supply chain consultant with working knowledge on scenario analysis.

Role of Consultport

Consultport proposed 4 strong consultant profiles within 72 hours. The client interviewed 3 candidates and selected a former senior consultant from Kerkhoff Consulting with rich project experiences in supply chain optimization. The consultant started working on the consulting team 5 days after the initial request.

Approach

Scenario Definition & Testing

To identify the most effective supply chain optimization strategies, the consultant defined and tested potential scenarios on routes and locations for distribution centers (DC).

The consultant evaluated different DC locations in Germany, ran simulations on various routes, and assessed the potential for pool distribution through scenario analysis.

To support the scenario testings, the consultant utilized real data provided by the client. The data included historical order volumes, transportation costs, and delivery time.

Solution

Implementation Plan & Pilot Program

After rigorous testing, the consultant identified an ideal DC location and a specific route that would reduce travel distances and enable cost savings. Based on the analysis results, the consultant developed an implementation plan.

For the pool-distribution scenario, the consultant recommended a cautious approach and highlighted the need for further analysis. A pilot program was proposed to test the strategy in selected regions.

Results

Granted Approval for Implementation

The implementation plan was presented to the leadership team and received positive endorsements.

Currently, the construction of the new DC is under way. On the other hand, the initial results of the pilot program showed promise to utilize pool distribution strategy on a larger scale in the future.

The client extended their engagement with the consultant to oversee the execution of the plan.