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Omnichannel distribution network design

Due to crucial organisational changes, increasing online sales volumes, and continuous developments in the commercial propositions and product range, there was an apparent need to restructure the distribution network in order to:

  1. Accelerate the desired commercial proposition

  2. Support the omnichannel fulfilment ambition (for example with entirely interchangeable online/offline distribution channels, shop pick-up, shops storage)

  3. Improve the efficiency, costs, and capacity of the distribution centre

What was our approach?

  1. In collaboration with the management, we established the scale of the commercial proposition in order to facilitate it by deploying the new distribution network (e.g. the number of SKUs, channel mix, product features)

  2. Development of a growth model for logistic volumes

  3. Assessment of the current distribution structure, identification of problems/bottlenecks, and the execution of a fit-gap analysis with the growth model

  4. Development of future warehouse layout, automation options, detailed processes, and IT/WMS requirements

  5. Development of the business cases for every scenario, including the required investments and reduction of costs

  6. Facilitating boardroom decisions

What did we achieve?

  1. We developed a solid omnichannel concept for the distribution centre where inbound, storage, and picking activities for online and offline flows are integrated and supported by automated processes

  2. Substantial cost reduction of 18-20% on the total distribution costs

  3. The distribution centre has been structured in such a way that it will not just facilitate the current commercial ambitions but also those in the future

What was the client’s experience:

IG&H pools thorough logistic expertise and combines this with a pragmatic approach for an effective decision forming process based on facts.


Interested in what IG&H can do for you? Contact us!

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