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Origin Pre-Retailing Freed Store Space and Cut DC Handling Costs by 15%
A large Australian retailer wanted more innovation from its supply chain partner and needed a redesign that aligned with changing sourcing strategies. A phased set of origin-based pre-retailing initiatives reduced downstream handling and lowered overall cost.
Table of contents
Customer Overview
Challenges
Solution
Results
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Customer Overview
- One of Australia’s largest retailers
- More than 180 stores across Australia and New Zealand
- Three sourcing offices in Shanghai, Delhi, and Hong Kong
- Annual throughput of about 98 million units
Challenges
- Existing provider delivered acceptable performance but limited innovation
- Heavy pre-retailing activity at destination DCs and stores drove up cost
- Changing sourcing strategy required supply chain redesign
Solution
- Proposed a phased program of innovation projects after onboarding
- Shifted selected pre-retailing activities upstream in the supply chain
- Built flexible solutions aligned with the retailer’s evolving sourcing strategy
Results
- Freed up 20% of retail store space previously used for inventory handling
- Reduced destination DC handling and lowered operating cost by 15%
- Lowered overall supply chain cost through packaging design, decanting, and other innovations
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