Case Study: Faster Fulfillment, Lower Costs

Building a Resilient, Scalable Omni-Channel Network

A leading footwear and apparel company was navigating rapid growth and the complex realities of an omni-channel market. With fulfillment operations spanning national and specialty retail, e-commerce, and international markets, the company faced a growing disconnect between its distribution network’s capacity and escalating customer expectations.

The primary distribution center, a key hub in the Midwest, was nearing its limits—especially during peak seasons—leading to bottlenecks in picking capacity and storage. These constraints created ripple effects across the network, impacting speed, accuracy, and flexibility. E-commerce and specialty retail customers, who demand fast, reliable service, felt the pressure most acutely, as delivery times stretched and service levels dipped.

At the same time, the company’s supply chain costs were climbing. Operating within a legacy network design, it struggled to keep pace with market demands while maintaining profitability. The challenge was clear: optimize the distribution footprint to reduce cost-to-serve, enhance capacity and agility, and deliver the elevated service customers expected—all while staying aligned with the brand’s customer-centric ethos.

Miebach Consulting led an end-to-end network optimization, balancing cost, service, capacity, and sustainability. We
began by assessing the current state, building baseline models and integrating third-party fulfillment operations into the analysis. Through scenario modeling, we evaluated multiple distribution strategies—factoring in location, product segmentation, and direct shipping options—to design a future-ready network.

The solution: a resilient 3-node network featuring two inbound hubs and three fulfillment centers, tailored to improve service levels, streamline inventory, and enhance flexibility for future growth.

Labor costs dropped by 40% due to automation and streamlined operations, while optimized routing and facility placement cut CO2 emissions. The network’s enhanced resilience, bolstered by multiple fulfillment centers and direct shipping capabilities, reduced risk exposure to future disruptions.

Miebach provided a detailed Supply Chain Playbook, outlining a phased implementation roadmap to ensure scalability and alignment with the company’s long-term growth ambitions.