Specialty Retailer

A specialty retailer of urban apparel, footwear, equipment and accessories was bursting at the seams.

The Challenge:

This fast growing multi-channel retailer had over 450 stores and plans to nearly double over the next five years through both organic growth and acquisitions. Direct-to-consumer volume had also doubled, and transportation costs were being driven higher by the geographic placement of the store fulfillment center.

The Solution:

FORTE's supply chain consultants used a network optimization model to simulate the effects of market growth on outbound transportation cost and service levels. They modeled and tested various geographic DC combinations and identified a go-forward strategy. Using the identified go-forward path they were able to develop warehouse layouts and process flows for the new facility.

The Result:

$4 millionreduction in transportation costs

The network optimization model identified that a single, but relocated DC would support growth for 3-5 years. This solution would reduce transportation costs by $4 million and increase customer service levels from 7 to 6 days for the entire US and 5 day delivery would improve from 52% to 93%.

A second DC could also be justified in year three. FORTE's distribution center consulting experts provided a compelling business case and the recommendations were implemented within 6 months of completion of the study.

Key Services Employed Strategic Development Facility Performance Analysis Distribution Center Design & Implementation