11
Luxury brands represented
Luxury Distributor Cuts Lead Time 16% and Saves €250K via Supply Chain Excellence
A global luxury distributor managing 21,000 SKUs across Europe faced rising complexity and a rapidly growing workload in its Amsterdam warehouse. With volumes expected to double, the company partnered with EFESO to redesign material flows and strengthened operational discipline to support long-term scalability.
Industry: Consumer Goods and Luxury
Service: Logistics and Distribution
Service: Supply Chain
Our Client
A global distributor representing 11 luxury brands sourced from 14 vendors, specializing in jewelry, watches, and writing instruments. The company manages six distribution regions across Europe and operates a central warehouse in Amsterdam supplying two major platforms, 24 boutiques, and 1,911 wholesalers.
14
Vendors sourced from
21K
SKUs distributed
The Challenge
As the company shifted a major share of EU warehouse activities to Amsterdam, its operational load was set to double in the coming years. This created several critical challenges:
- Rising operational complexity: Managing 21,000 SKUs across multiple channels required standardized processes and better flow synchronization.
- Inefficient material handling: Non–flow-oriented processes created dead stock, long search times, and inconsistent picking activities.
- Need for operational discipline: The warehouse lacked a comprehensive performance control system, with no unified governance or KPI ownership to sustain improvement.
- Pressure to reduce lead times: To maintain the brand experience expected in luxury markets, the company needed to guarantee fast, stable, and cost-efficient delivery.
Real Results Achieved Together
Through a structured Lean transformation, the warehouse significantly improved efficiency, flow, and operational control. The new performance system established long-term routines and empowered teams to maintain measurable progress.
-16%
Reduction in lead times
€250K
Working capital savings
-17%
Reduction in search and picking time
Transformation Impact
- By implementing a flow-oriented process, we achieved a reduction of nearly 16 percent in lead times. This strategic approach not only eliminated dead stock but also significantly minimized overall inventory levels, resulting in approximately €250K in savings (equivalent to 8 percent of total inventory value)
- By executing the 5S methodology and standardization, we achieved a 17 percent reduction in average search and picking time
- The implementation of the Performance Control System (PCS) has led to enhanced structure, clarified roles and responsibilities and notable performance improvements
Our Approach
EFESO deployed a hands-on methodology centered on warehouse flow optimization and Lean operational excellence.
The project included:
- Walking the full spare-parts flow to build a detailed current state value stream map, supported by video analysis and employee interviews
- Forming improvement teams focused on material handling and warehouse flow enhancements
- Implementing 5S and standardization to reduce search and picking time
- Designing and deploying a performance control system with clear KPIs, governance, and loss ownership
This structured approach helped the client establish stable routines, embed Lean practices, and build the foundation for a scalable warehouse capable of supporting future volume growth.
Related Services
Supply Chain
Supplier complexity obscures 70% of your value creation. We strengthen networks through supplier development programs, risk mitigation strategies, and collaborative innovation platforms.
Ready to Transform Your Warehouse Into a Lean Powerhouse?
- Unlock hidden capacity and slash lead times without adding headcount
- Stop watching inventory pile up while customer service suffers
- Join luxury brands that doubled their volume while cutting costs
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