€1B
Annual sales
€11.4M Savings from Decentralization Strategy in the Toy Industry
Our client is a leading toy manufacturer with sales of €1 billion, with clients in 25 countries, offering a diverse portfolio comprising approximately 10,000 SKUs. The majority of their products are manufactured in factories located in Asia and are distributed through a network of 4 ports in the EU and 5 distribution centers.
Industry: Consumer Goods and Luxury
Service: Supply Chain
Our Client
Our client is a leading toy manufacturer with sales of €1 billion, with clients in 25 countries, offering a diverse portfolio comprising approximately 10,000 SKUs. The majority of their products are manufactured in factories located in Asia and are distributed through a network of 4 ports in the EU and 5 distribution centers.
25
Countries served
10K
SKUs in portfolio
9
Distribution facilities
The Challenge
Delays were encountered in a project aimed at centralizing distribution operations in Eastern Europe, which necessitated the extension of existing third-party logistics (3PL) contracts.
The project’s aggressive growth agenda was misaligned with the challenges of long lead times, high inventory levels, low margins and elevated operational risks.
An analysis was conducted on the configuration of assets, flows and policies to recommend the most suitable setup. This analysis took into account the impacts of centralized operations on existing 3PLs as well as potential new ones.
Additionally, the expected expansion in e-commerce was considered alongside the continued attention to brick-and-mortar sales.
Real Results Achieved Together
The decentralization strategy delivered significant operational and financial improvements while positioning the company for future growth.
€11.4M
Annual savings achieved
Transformation Impact
- Designed a decentralization strategy which will lead to millions in savings
- Achieved improved service reliability with shorter lead times
- Delivered expected business needs, including optimizing channels and customer mix for e-commerce
- Revised 3PL strategy, implementing actionable contracts, SLAs and fostering collaborative and strategic relationships
Our Approach
- Delivered an initial Center of Gravity study
- Completed Assessment of Business Needs and Supply Network Requirements
- Business Needs translated into Supply Network Requirements
- As-is model (Baseline) built and validated
- Improved base case developed, and quick wins identified
- Extended case developed to reflect long term growth
- Evaluated 11 main scenarios and additional what-if and sensitivity analysis to identify the optimum global 10-years Supply Chain footprint
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 Supply Chain into a Competitive Advantage?
- Unlock millions in savings while improving service reliability across your distribution network
- Stop struggling with misaligned logistics strategies that drain margins and increase operational risk
- Join leading manufacturers who’ve redesigned their supply chains for sustainable growth and profitability
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