Supply Chain Strategy Boosts Next-Day Service and Profitability for Sportswear Retailer

Client Context

• A leading UK high street sportswear multi-channel (including e-commerce) retailer expanding rapidly in EU in next 5 years

Key Challenges

• Need for a comprehensive E2E Quality Strategy and improved Supply Chain performance

• Current UK-to-EU supply model is unsustainable due to:

  • Excessive tax and duty penalties

  • Elevated operating costs

  • Longer lead times compared to competitors

• Existing supply chain is not equipped to support future growth—especially in e-commerce

Approach & Key Success Factors

• Strategic review and analysis of end to end supply chain costs, flows and capacities
• Developed a series of options to support business projections
• Determined the optimum logistics network to service Europe’s 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

6.5%

Achieved mitigation of Tax and Duty costs of applicable EU revenue

2% 

OpEx reductions of sales versus original logistics network

15% to over 85%

Increase in Retail Next Day service

2-3 Days

Online fulfillment for almost all of the population

Over 30%

Next Day fulfillment