Home Improvement Retail Chain

Home Improvement Retail Chain Increases Distribution Network Capacity and Realizes Significant Savings.

The Challenge:

This home improvement retail company distributes building materials, home improvement supplies and outdoor products to its supply chain network of more than 1,000 stores. Double-digit growth was taxing capacity in the existing DC network. Their one-day customer service goal was only being met 84% of the time and as new stores were added, those service levels continued to decline.

The Solution:

FORTE's supply chain consultants identified a go-forward strategy for expansion by creating a model to simulate the effects of market growth on outbound transportation cost and service levels. They tested various geographic DC combinations to determine the optimum path for this retailer.

The Result:

21%reduction in transportation costs

99%one-day customer service levels

The model designed by FORTE's supply chain consulting experts identified that the addition of two new DCs would reduce their transportation costs by 21% and improve the one-day customer service levels from 84% to 99%. This new footprint would support additional growth for at least 5 years.

Key Services Employed Strategic Development Facility Performance Analysis Distribution Center Design & Implementation Operational Performance Analytics / Metrics