The Challenge
A fast-growing global retailer needed to ensure its supply chain could support rapid expansion across wholesale, retail, and DTC channels. Key issues included:
- Heavy dependence on 3PLs with inconsistent performance and unclear long-term capacity
- A U.S.-centric distribution model causing bottlenecks, high freight costs, and overreliance on air
- Limited visibility into inbound/outbound transportation optimization
- Inefficient inventory positioning and returns processes slowing fulfillment
- No clear roadmap for future infrastructure, systems, or when to consider insourcing
The client required a global supply chain strategy that would improve service, lower cost, and scale for the next 5+ years.
Our Approach
Phase 1 — Baseline & Digital Twin
A full review of transportation, inventory, capacity, and 3PL operations was conducted. A highly accurate Digital Twin of the supply chain was created to model current cost drivers, product flows, and service performance, forming the foundation for scenario testing.
Phase 2 — Future-State Supply Chain Design
Multiple network and sourcing scenarios were evaluated—including regional DC options, product flow redesign, and insource vs. outsource models. Each scenario was compared using cost, service, capacity, and inventory implications to determine the most efficient global configuration.
Phase 3 — Implementation Roadmap
The final plan detailed:
- Recommended global distribution footprint
- Transportation optimization opportunities
- 3PL capability expectations and insourcing triggers
- Product flow and inventory placement strategy
- System, process, and infrastructure needs
- A multi-year roadmap with financial and sensitivity analysis
Results
- Improved alignment between supply chain operations and strategic growth priorities
- $4.5M–$6.8M in annual transportation and global freight savings through mode optimization, better routing, and reduced air usage
- $2.2M–$3.0M reduction in 3PL and distribution operating costs due to improved labor planning, streamlined processes, and clarified capacity requirements
- 20–30% improvement in inventory availability across markets, reducing lost sales and improving store/DTC service
- 15–20% reduction in inbound cycle times from improved global product flow design
- Clear financial triggers for future capacity expansion and insourcing decisions, creating long-term cost predictability
- Greater scalability and resilience across retail, wholesale, and DTC channels
- By building a data-driven, scalable supply chain strategy, the organization transformed its network into a true growth enabler—strengthening service, reducing cost, and creating long-term operational advantage.
