With an extensive home and fashion assortment, Wehkamp is a leading online retailer operating from several warehouses in The Netherlands. At the core of its business model is the ability to offer a reliable next-day and same-day delivery, the foundation of which is a solid supply chain execution. 

The retailer was facing high inventory levels that posed a risk to the fulfillment of orders in a profitable way. Overstock and low stock turns resulted in additional warehouse storage costs and increased markdown risk. Help was needed to free up capacity while ensuring the availability of stock is not changed. 

 A fact-based and holistic approach to achieving the best results 

First, IG&H conducted a quick scan to determine the approach and improvement potential. The outcome was to start optimizing the setup with the largest and most impactful suppliers. In doing so, we would provide (short-term) evidence for this way of working. A holistic approach was taken by looking at replenishment methodology and safety stock settings, improving supplier reliability, renegotiating replenishment frequency and reducing the longest supply lead times.  

In collaboration with Wehkamp management and employees, we used a hands-on approach and supported them with data analysis to work toward a shared target of working capital reduction. In this results-oriented way of working, we included cross-functional weekly stand-ups with direct feedback on improving the results. 

Finally, we set up multiple preconditions for improving the sustainability of the solution. These included KPIs and incentives, organizational design, management style and continuous supplier performance monitoring.