Redesign of product/distribution channels

April 6, 2016 535

polar-logoDescription
Polar Electro designs, manufacturers and markets wireless heart rate monitors promoting individual’s control over the exertion level of the body to improve the exercise. Polar Electro is the market leader in heart rate monitors having worldwide sales and logistics operations.

Opportunities
Polar Electro is using own sales offices as well as independent distributors to market their products. The strategy of Polar Electro is to strengthen sales and marketing activities to further increase the sales volumes. As part of this strategy, Polar Electro wants to develop the sales office structure and optimize the distribution network.

Solution
Together with Ernst & Young ILAS, Groenewout has analyzed different alternative distribution networks on logistics costs and on tax issues.

Two central warehouses and seven regional warehouses is determined as the optimal balance between logistics costs and tax issues. Groenewout’s benchmark databases proved that quick wins are possible for transport to the regional warehouses.

Benefits

  • 5% Cost reduction in logistics costs
  • Optimal distribution network which meets the customers requirements
  • Quick wins for transport.
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