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Supply Chain Optimization

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Supply Chain Optimization

Significant Increase In Profit Margins For International Retailer

Business Need: A leading international retailer was facing increasing operational challenges: A growing set of global locations and customers; sourcing its merchandize from a large number of suppliers globally; a rapid increase in online sales.

Our Client is a fast growing international retailer, with a growing set of global locations and customers. The company is based in the Netherlands, with offices and locations in Europe, Asia, North and South America, and Australia. With revenues exceeding 3 billion dollars, this company is on a fast track to become a global powerhouse in retail.

The Project: Perint's team of retail-supply chain experts, uncovered several opportunities in the evaluation stage of this project.

  • Supplier selection should look at total costs, and not just cost of items sourced.
  • Performance improvement from shortening internal clearance processes.
  • Value creation through more efficient and on time order management.

Perint's consultants recommended drastic changes to the client's supply-chain- management approach. The product range was divided into segments such as core products, seasonal products, and trend-driven items. The segmentation helped shape recommendations for a more flexible supply- chain effort.

  • For fast-moving core items, Perint consultants established an approval process with rapid turnaround cycles, increase domestic sourcing, and accelerated replenishment cycles
  • For segments with high demand and with predictable sale patterns, reduce inventory levels
  • Slower-moving items should be stored in separate warehouses in dedicated delivery centers

Direct Impact: Achieving these supply-chain efficiency improvements resulted in net margin increase of more than 5 percentage points.

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