$8M
Annual benefit for pilot categories (14% cost reduction)
Textile Network Design Boosts Sales and Margins 20%
Service: Logistics and Distribution
Service: Supply Chain
Our Client
A global custom-made fashion and home furnishing company operating in a promotion-driven market, offering home delivery and experiencing rapid growth.
The Challenge
The company faced severe customer service problems and high costs of poor quality as its supply chain struggled to keep pace with rapid growth.
- Highly volatile demand created service-level problems, resulting in compensation payments and negative publicity.
- High but unquantified quality costs and lack of true profitability measurement.
- Low on-time performance during peak seasons, especially Christmas.
- No clear Home Delivery strategy to ensure a consistent and high-quality customer experience.
The key challenge was to build a superior customer service proposition to enhance brand reputation, support volume growth, and improve margin through better service, optimized promotions, and reduced quality costs.
Real Results Achieved Together
The collaboration delivered significant commercial impact and long-term service reliability improvements
+20%
Sales and margin growth through optimized promotions and pricing
$3.5M
Per year service improvement benefit supporting sales growth
Transformation Impact
- Developed and implemented an agreed blueprint for growth and cost reduction.
- Improved service performance to support sustained sales growth.
Designed a weekly performance report to track key KPIs. - Achieved supplier buy-in and commitment to change.
- Reduced customer compensation costs dramatically over the key Christmas period.
Our Approach
The project followed a two-phase structure—Initial Review and Implementation—executed by a joint EFESO–client team combining supply chain, commercial, and operational expertise.
Initial Review
- Conducted interviews across all business functions and key suppliers using a scorecard approach for rapid diagnosis.
- Quantified the true cost of quality (£3M per year) by analyzing orders with service issues.
- Surveyed customers to identify dissatisfaction drivers—31% cited late delivery and poor call response.
Implementation and Change Program
- Designed and deployed a detailed implementation program with 20 sub-projects across pricing, promotions, range management, supplier collaboration, and call center service.
- Established a weekly KPI report to monitor and sustain improvements.
- Developed a comprehensive Home Delivery strategy and business case for an in-house delivery service.
- Facilitated supplier negotiations to reduce costs by 4% while maintaining mutual benefits.
Collaboration and Results Management
- Set up joint capacity, resource, and lead-time planning with suppliers.
- Improved on-time performance from 50% to 95% over the Christmas peak period.
- EFESO managed the overall transformation, providing external objectivity and ensuring cross-functional alignment.
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 hidden profitability while delivering exceptional customer service
- Stop losing revenue to service failures and uncontrolled discounting
- Join leading retailers who’ve turned supply chain complexity into sustainable growth
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