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Feasibility study – change to Omni-Channel Logistics

November 07, 2018 1861 Views

Description

Estée Lauder Companies Inc. is an American manufacturer and marketer of prestige skincare, make-up, fragrance and hair care products. The company owns a diverse portfolio of brands, distributed internationally through retail channels and e-commerce, and has its headquarters in New York City.

Opportunities

Estée Lauder defined their Masterplans for the near future. One of the main topics was to launch e-commerce business for several European countries.

Question was to develop a robust integrated logistics concept that supports the omni-channel business requirements. This new logistics concept had fit into the overall operations strategy which is a Fast & Agile operating model.

Solution

  • Business volumes were gathered and analyzed to define current and future growth. Logistics processes and current system capacities were analyzed too.
  • During a workshop expected e-commerce services like next day delivery, invoice printing, promo docs, payment options, returns solution, etc. were discussed and how these kind of services could impact current logistics operating model.
  • Several growth scenarios (upper & lower bounds, incl. what-ifs) were mapped against needed capacities (AS/RS & PTL).
  • Finally lay-out designs and CAPEX estimates were conducted for all scenarios.

Benefits

  • Translation of the business masterplan into logistics masterplan: in-depth omni-channel commerce knowledge and experience was helpful to identify the potential eConsumer needs and the logistical impact.
  • Clarification of the capacity gaps in the future and how to solve them.
  • Whole study with concrete results was delivered within 6 weeks.
  • Providing accurate capital request for ExCo team.