Case Study: Network Optimisation and Logistics Tendering Across Western Europe

Miebach redesigned a European pharmaceutical logistics network consisting of 16 outsourced warehouses and more than 25 logistics service providers operating in parallel. A structured tender of 6 months end-to-end across three regional lots ensured competitive pricing and operational feasibility.

The network was consolidated to 8 outsourced warehouses and 5 logistics service providers, while maintaining service across approximately 25,000 delivery points and 2,500 SKUs under controlled temperature conditions (15–25°C).

Result: €18.0 million annual savings potential and reduced operational complexity.

Following several acquisitions, one of Europe’s leading pharmaceutical manufacturers was operating a fragmented logistics network across Europe. Legacy set-ups from acquired businesses continued to run in parallel, creating overlapping coverage, limited cross-country synergies, and a high degree of operational complexity.

The existing “as-is” network comprised 16 outsourced warehouses and more than 25 logistics service providers across warehousing and distribution. At the same time, the client was serving around 25,000 delivery points across B2B and B2C channels and managing approximately 2,500 SKUs under controlled temperature conditions of 15–25°C.

Against this backdrop, the client needed a robust and scalable logistics network that would reduce complexity and cost while maintaining service performance across the region.

The project was designed to:

• optimise the network footprint and remove redundancies created through acquisitions 
• reduce the number of logistics service providers to enable greater centralisation and governance 
• run a structured warehousing and transportation tender to identify best-fit partners across both local providers and larger multi-country players 

1. Defining the right network footprint

Miebach began with a top-down network design to create transparency on the existing footprint and define the optimal future-state structure across Europe.

A key element of the approach was the recognition that not every country required structural change. In selected markets, the existing set-up was deliberately retained due to country-specific requirements, such as tax considerations or service needs, rather than applying a one-size-fits-all model.

The resulting target network consisted of 8 outsourced warehouses designed to balance cost, resilience and service:

• 5 warehouses were awarded through tender, either as new 3PL solutions or re-awarded operations 
• 3 existing warehouses were retained to meet local market requirements 

2. Running a structured tender for warehousing and transportation

To make the target network executable, Miebach led a comprehensive tender covering both warehousing and transportation. More than 20 logistics service providers were screened and included in the longlist, ensuring a competitive and transparent process with a broad range of capabilities. The tender was structured in a way that reflected market realities and encouraged participation from both local specialists and international providers.

The lotting strategy was defined as follows:

• Lot 1: Germany & Austria
• Lot 2: Spain, Italy, France & Benelux
• Lot 3: United Kingdom

A structured evaluation approach balanced commercial competitiveness with operational feasibility and service reliability. Service reliability was included as a critical factor due to the temperature-controlled nature of pharmaceutical distribution.

3. Recommending a leaner and more manageable partner landscape

Based on the network design and tender results, Miebach developed a final recommendation for a streamlined logistics set-up. The recommendation was a future partner landscape of 5 logistics service providers in total, including distribution. This reduced fragmentation, improved manageability and strengthened governance, while maintaining the reach required for omnichannel fulfilment across Western Europe.

Tender duration: 6 months end-to-end

The project delivered a more scalable and easier-to-manage European logistics network while safeguarding service requirements across both B2B and B2C channels.

Key outcomes included:

• €18.0 million potential savings per annum
• Warehousing footprint reduced from 16 to 8 outsourced warehouses 
• Logistics partner landscape reduced from 25+ to 5 providers 
• Continued coverage of around 25,000 delivery points 
• Controlled-temperature handling maintained across approximately 2,500 SKUs 

What this means in practice

The new network reduces structural complexity while maintaining service performance across multiple countries. It also provides a clearer governance model and a foundation for future growth or further integration activities.

Key takeaway

Combining network design with a structured logistics tender enables companies to reduce complexity and cost while maintaining service performance in multi-country supply chains.

What is logistics network optimisation?

It is the redesign of warehouse locations, transport flows and logistics partners to reduce cost and complexity while maintaining service levels.

Why run a logistics tender?

A structured tender ensures transparency, competitive pricing and the selection of providers that meet operational and regulatory requirements.

Are you planning to redesign your logistics network or run a logistics tender?

Speak to a Miebach expert to assess your current set-up and identify optimisation potential.