The Solution
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:
- Design and move the Pre-Retailing operation from manual DC’s to an efficient DC which is scalable and resilient in all aspects,
- Design and move 1-man Returns from a manual DC to the same centralised DC where the Pre-Retailing operation will be carried out, deriving maximum efficiency.
The location of this centralised DC was chosen in such a way that the products is able to reach key ‘branches’ in the shortest possible time hence reducing the time to market outbound, and to refund Customer in shorter timelines inbound to the client.