- Well-known French textile brand achieving 750m€ turnover per year.
- Combination of owned and franchised stores in France.
- Increasing number of stores in Europe – franchised and multi-brand.
- The client had significantly developed its sales in Europe over the previous three years.
- All stores were replenished daily from the client’s central warehouse located in the Paris region.
- Transportation costs were a major component of the logistics cost and downgraded the operating margins (many express shipments performed due to service quality issues).
- The central warehouse capacity was used at around 100% due to the ever increasing activity outside of France.
- The overall quality of service (especially on-time delivery) needed to be improved.
- The new warehouse needed to be operational within the next six months.
- Tokema was appointed by the client to support their warehousing strategy.
- An initial study was made by Tokema consultants to a) evaluate the ‘centre of gravity’ of the warehouse, knowing the main export markets were Scandinavia and Germany, and b) compare a ‘make’ or ‘buy’ option.
- The ‘buy’ option was selected and Tokema built the technical requirement specifications that were included in the Request for Quotation.
- A proposal document was sent to a list of selected third-party logistics companies.
- Tokema consultants supported the client to manage the RFQ up to the contract discussions with the logistics service provider.
- Tokema monitored the implementation with the logistics service provider up to the implementation of a continuous improvement methodology with the operations team.
- The warehouse was placed in Germany as per the ‘centre of gravity’ calculations.
- Inland transportation costs reduced by 23%.
- 100% variable logistics cost model with optimised logistics costs – multi-user warehouse (buy option).
- Increased quality of service to export markets.
- Better focus on French operations from the central warehouse.
- Increased operating margins resulting from reduced logistics costs and close to nil express shipment.