6.5%
Mitigation achieved of tax and duty costs on applicable EU revenue
End-to-End Supply Chain Transformation for Sportswear Retailer: Designing a Scalable European Logistics Footprint to Enable Profitable, Next-Day Service Growth
Industry: Retail
Service: Supply Chain
Our Client
A leading UK high-street sportswear retailer operating across multiple channels, including e-commerce, and planning a rapid five-year expansion across Europe.
The Challenge
To support its European growth ambitions, the company needed a resilient and scalable end-to-end supply chain strategy. Its existing UK-centric model was creating structural and financial inefficiencies:
- Excessive tax and duty penalties under the UK-to-EU model
- High operating costs and long lead times compared with competitors
- Network unfit for future e-commerce growth
- Limited agility to meet next-day delivery expectations across Europe
Real Results Achieved Together
The transformation delivered measurable improvements in cost efficiency, customer service, and European market agility. The new supply chain design achieved a 6.5% mitigation of tax and duty costs on applicable EU revenue, a 2% OpEx reduction as a percentage of sales, and significantly improved service performance. Next-day retail service coverage rose from 15% to 85%, while online fulfillment was reduced to 2–3 days for nearly all European customers, with 30%+ next-day coverage across key markets.
2%
OpEx reduction as a percentage of sales
+30%
Next-day coverage across key markets.
Transformation Impact
Through strategic network redesign, data-driven scenario modeling, and a phased implementation plan, EFESO enabled the retailer to:
- Strengthen profitability through a more efficient and tax-optimized supply model.
- Achieve next-day service capabilities aligned with customer expectations.
- Create a scalable logistics foundation to support European expansion.
Our Approach
EFESO conducted a strategic supply chain review and designed a future-ready European logistics model to optimize performance, cost, and service.
Strategic Supply Chain Review
- Performed a full end-to-end analysis of costs, flows, and capacities.
- Identified structural performance gaps across logistics and fulfillment operations.
Scenario Development and Business Modelling
- Built and tested multiple supply chain design scenarios aligned with five-year growth plans.
- Evaluated the optimal European footprint to serve both retail and online channels efficiently.
Implementation Planning and Business Case
- Developed a pragmatic implementation roadmap with time-phased cashflows.
- Designed a robust investment appraisal to secure executive and stakeholder alignment.
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