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Distribution Network Study Europe

April 06, 2016 2427 Views

coty_logo_svgDescription
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.

Opportunities
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.

Solution
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.

Benefits

  • Potential costs saving of € 2.5 million
  • Insight in many scenarios
  • A good balance between theoretical optimal solutions and real life constraints