European Retail Behemoth Prioritizes SKUs and its Transportation to Save €3.5 Million per Year in Logistics Costs

Sense shifts in demand in advance and dynamically adjust distribution per DC directly from suppliers

The client is a leading European Retail Giant that has been operating for approximately 65 years. It was one of the first retailers in the region to pioneer the transition to organic products and online shopping.

Retail distribution, despite having undergone considerable improvement over time, faces more disruptions than ever before. With the advent of e-commerce, service expectations have accelerated triggering unprecedented demand. 

Some of the major problems the client faced were:

• Frequent disruptions
• Skyrocketing logistics costs, with the rise in e-commerce and rapid rate of order fulfillment
• Lacking the ability to adapt inventory levels to demand variance. 

In this case study, we explain how the European Retailer was able to:

• Revise allocation practices for prioritised SKUs 
• Dynamically adjust distribution per DC

resulting in €3.5 Million Savings per Year in Logistics Costs.