Situation
A large Danish retailer selling primarily selling drugs, health and beauty products has a logistics set-up that mainly serves the +250 physical outlets and only a temporary and cost-intensive solution with growth limitations serving the growing online sales. With online sales growth accelerating, the client needs to take a decision on what the future logistics set-up would look like.
Approach
To secure that the logistics set-up would be a catalyst for future growth instead of a limitation, Valcon developed more than 15 potential scenarios and helped the client understand the implications of each of them. Through an in-depth analysis of the current baseline involving among others identification and evaluation of the future scenarios, building an investment calculator and developing sensitivity analysis, establishing design parameters, and clarifying the logistics set-up possibilities, Valcon helped the client decide on a future set-up with a solid business case supporting the large investment.
Results
The project enabled the retailer to decide on a future logistics set-up that would support the client’s growth ambitions and increase its competitiveness.
