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Online strategy for logistic fullfillment

June 22, 2021 233 Views

Description
Etos is a pharmaceutical company. They have their online operation outsources in Tiel and an owned operation for store deliveries in Beverwijk. Beverwijk also supplies Tiel.

Opportunities
Etos online is growing rapidly, therefore outsourcing costs are also increasing as the current process is manual. The online assortment is almost the same as the offline assortment so huge opportunities to combine those two. Etos has asked Groenewout to advise in their future online strategy on logistic fullfillment (insource or continuing outsourcing).

Solution
To define their future online strategy regarding fullfillment several steps were taken:

  • Analyse current and to be volumes, capacity and costs;
  • Set up different scenario’s and bench mark analysis (in house online, bench mark outsourcing options, etc);
  • Define preferred scenario;
  • Set up layout with Capex, Opex, FTE and business case;
  • Set implementation plan with phased approach, risk analysis and IT impact.

Benefits

  • Analyzing their current flows and numbers gave Etos already a huge insight in their own operation and together with the bench mark figures a good insight to taken decisions going forward.
  • With this new logistic fullfilment strategy Etos has good insight in their logistic costs for the different scenario’s to take the right decisions in time to outsource or insource and the level of investments needed.
  • With the logistic concept analysis Etos has good insights in the benefits of investing in a more mechanized solution with a positive business case and the steps towards this end state (incl cost per order impact).