Key challenges
The client owns multiple apparel and accessories brands currently running separate logistics networks to support store and online sales. The key challenge is how to cost effectively scale the online fulfilment task, and the extent to which the future distribution network should be domestically based or offshore. The dynamic sourcing landscape must also be considered, as well as the requirement to offer an efficient and rapid supply chain.
Our approach
TMX utilized unique modeling tools to analyze multiple on-shore and off-shore network options, ultimately selecting the most advantageous choice based on cost, service quality, and flexibility. This involved closely collaborating with the client to identify and evaluate seven prospective network scenarios. Additionally, TMX determined the configuration and operation of data center infrastructure, including warehouse technology selection, benchmarked current network expenses, assessed future costs, and impacts through comprehensive financial evaluations.
Recommendations for an optimal omni-channel fulfillment strategy were provided, aimed at supporting growth and reducing online fulfillment expenses, alongside developing a phased transition plan focused on maximizing benefits while minimizing risks.
The results
The outlined plan proposed a unified future network capable of managing omni-channel fulfillment while providing complete flexibility in sourcing strategies. The new network was projected to decrease supply chain operational expenses by approximately 18%, ensuring a favorable payback. Moreover, there were immediate tactical improvement opportunities suggested to be implemented, all aimed at funding the implementation cost of the new network.