Distribution Network Study Europe
Coty is a leader in beauty and has developed an unrivaled portfolio of notable brands. Coty delivers its innovative products to consumers in over 130 countries worldwide. The Coty Prestige brand portfolio is distributed in prestige and ultra-prestige stores and includes Calvin Klein, Chloé, Davidoff, JOOP! and many others. The Coty Beauty brand portfolio is more widely distributed and includes adidas, ASTOR and many others.
Coty wanted to redesign the European distribution network for the two divisions Beauty and Prestige. The scope was defined as all flows from suppliers to customers.
Based on a full year of sales and inventory data, a model was developed of the Coty distribution network. This was done in 3 steps:
1. Base case model of the as-is flows and costs.
2. Blue sky model to find the optimum without constraints.
3. Constrained model to do what-if analysis and to find the best solution for Coty.
In the initial project, significant savings were identified. In the period after the initial project, Groenewout assisted in more detailed analysis for UK, Iberia and Germany. For example the benefit of combining Beauty and Prestige products in one shipment to the same customer, were analyzed.
- Potential costs saving of € 2.5 million
- Insight in many scenarios
- A good balance between theoretical optimal solutions and real life constraints
50 years of experience
Consulting firm with over 50 years of experience.
Availability of a European logistics database with benchmark figures on transportation and warehouse costs.
Full scope expertise on network design, as well as warehouse design (conceptual layout, logistics - and storage equipment) and logistics building design (engineering and investment calculations).
Ability to support implementation of new logistics concepts (70% of Groenewout revenue is with existing customers in follow-up/implementation projects.
Extensive operational knowledge, hands-on, pragmatic and bottom-up approach.