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The high street retailer ran 3 different specific operations in their respective DC’s which had a high operational cost. The existing processes were inefficient and is supported by a number of key legacy applications. This made it difficult to scale up the operational efficiency and reduce the cost to business. The client expressed an interest to move ‘non-core’ activities out of their operational cost.
The ‘non-core’ activities were defined (6 in total). 2 of the highest priority activities were selected due to cost benefits to the retailer. The idea was to centralise the operations and split the process between a distribution and a fulfilment centre. It was decided to outsource this to a 3rd Party Logistics service provider: