$350M
Global turnover
Technical Apparel Company Reduces Warehousing Costs: Achieving Significant Productivity and Cost Improvements Through Process Optimization
Industry: Consumer Goods and Luxury
Service: Cost and Value Engineering
Service: Manufacturing
Service: Supply Chain
Our Client
A technical apparel company with more than $350 million in global turnover, operating a 20,000 m² warehouse under a hybrid model combining internal personnel and cooperative partners.
20K
Square meter warehouse with hybrid operating model
The Challenge
The company needed to enhance productivity and reduce costs across both internal and external warehousing activities while maintaining service quality.
- Complex setup: Managing 20,000–25,000 SKUs across multiple storage systems.
- Cost optimization: Reduce dependency on external warehousing and 3PL services.
- Workload balance: Align resource allocation between internal teams and cooperative partners.
- Operational control: Improve visibility and standardization of warehousing processes.
Real Results Achieved Together
By applying data-driven performance management and Lean warehousing principles, EFESO enabled the client to reduce fixed costs and boost productivity across all warehouse operations.
+$1M
Annual savings
22%
Reduction in direct staffing costs
37%
Reduction in external warehousing expenses
Transformation Impact
- Improved inbound and outbound logistics through balanced workload distribution.
- Enhanced productivity and resource utilization within warehouse operations.
- Strengthened performance monitoring through real-time dashboards.
- Achieved sustainable operational efficiency and cost competitiveness.
Our Approach
EFESO conducted a comprehensive assessment and implemented targeted improvement initiatives across all warehouse functions:
Comprehensive Assessment and KPI Definition
- Mapped all warehousing processes and defined key performance indicators (KPIs).
Productivity-Based Right-Sizing
- Designed a productivity-volume model to optimize workforce allocation in container inbound, picking, and outbound operations.
Operational Improvement Initiatives
- Doubled manual picking capacity through routing and stock allocation optimization.
- Implemented flexible storage for C-class SKUs (7,000–9,000 items).
- Optimized workload between internal and external warehouses to enhance flow efficiency.
- Improved packaging design to increase box utilization and reduce freight costs.
Performance Monitoring and Continuous Improvement
- Developed a comprehensive dashboard to monitor productivity, workload, and efficiency.
- Standardized replenishment and stock reallocation procedures for continuous improvement.
Related Services
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Aging equipment meets rising costs and technology disruption. We transform operations through smart factory integration, predictive maintenance, and workforce capability building.
Supply Chain
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Facing Similar Challenges?
- Balance workload across internal and external logistics.
- Reduce fixed and variable warehousing costs.
- Enhance operational visibility and control.
- Optimize workforce productivity and space utilization.
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