Reduction in logistics costs
Increase in DC capacity, from 500k to 2.2M units, through optimization
Increase in shipping speed by prioritizing based on both internal and store needs
leading fashion retail company in Mexico partnered with Sintec Consulting to fully design and optimize its supply chain. This comprehensive effort included creating a new distribution center (DC) layout, optimizing the existing DC, and refining the distribution network model to strengthen e-commerce operations. By prioritizing shipments based on both internal and store needs, shipping speed was significantly increased. Additionally, the enhanced layout boosted capacity, while the management team experienced improved alignment with network processes . These advancements drove operational efficiency and enhanced the company’s e-commerce capabilities.
“Overcoming the shift to an optimized DC and aligning management to enhance operational efficiency and support e-commerce growth”.
The company faced a complex internal challenge in transitioning from a direct store reception model to its own distribution center (DC). The need to optimize the DC layout and processes to meet business objectives exceeded the company’s current capabilities. Additionally, implementing ERP software for the optimized DC and addressing the misalignment among managers at the same level, as well as with the end-to-end (E2E) operation, further complicated the process.
The company partnered with Sintec Consulting to address the challenge of transitioning to a new distribution center (DC) and optimizing their supply chain. Sintec Consulting developed a comprehensive solution to enhance operational efficiency and support e-commerce growth.
The project delivered remarkable outcomes, significantly enhancing the company’s operations. The distribution center (DC) capacity was increased from 500k to 2.2M units, optimizing operational efficiency. Shipping speed saw a 62% improvement through better prioritization of internal and store needs. Additionally, an 18% reduction in logistics costs was achieved. Furthermore, the management team was aligned with new processes, ensuring smooth change adoption. These results not only optimized internal processes but also positioned the company for long-term success in the e-commerce sector.
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