Case Study: Strategic Redesign of a Logistics Network for a Leading Swiss Retailer

A Swiss retail company operates a multi-tier logistics network that serves both the e-commerce sector and brick-and-mortar retail. Several distribution centers, each handling different product groups, presented the company with increasing challenges in its logistics operations and new demands related to future developments. The existing network structure, focused on product specialization and product-specific requirements, led to complex transport flows, rising operating costs, and limited scalability.

To ensure the long-term sustainability and efficiency of the network, Miebach Consulting – as a leading logistics and supply chain consultancy in Switzerland – developed a forward-looking network strategy tailored specifically to the company’s needs. This strategy is based on an integrated network design that enables future-oriented decision-making through targeted route optimization and comprehensive scenario analysis.

Unlocking potential: project goals at a glance

The project transformed the client’s logistics network into a future-ready backbone for growth. It streamlined warehouse and transport structures to boost network efficiency and agility.

Consolidation and automation strategies cut logistics costs while elevating service levels across all business units.

Rigorous scenario analyses pinpointed the optimal number and most strategically positioned distribution centers, building a resilient and scalable network to power the company’s long-term ambitions.

Key Challenges During the Project:

• Complex logistics structures: The distribution of product assortments across multiple distribution centers led to inefficient and, in some cases, redundant transport routes.
  
  
• Limited infrastructure capabilities: Existing sites offered only restricted potential for expansion or modernization.
  
  
• Rising cost pressure: Continuously increasing operating costs required a balanced approach between capital expenditures (CAPEX) and ongoing operational expenses (OPEX).
  
  
• Scalability requirements: The network needed to be aligned with the projected growth in e-commerce without compromising the performance of physical retail distribution.
  
  
• Automation potential: Identification of suitable automation solutions that could be seamlessly integrated into existing processes.

The redesign of the logistics network provided valuable insights for further developing the supply chain:

• Cost savings:
  Significant reduction in logistics costs through an optimized warehouse structure and more efficient transport flows

• Service level optimization:
  Streamlined picking processes and shorter lead times enhanced performance across all business units

• Increased operational efficiency:
  Targeted use of automation and better space utilization led to higher productivity

• Future-proof scalability:
  Development of a long-term, sustainable strategy that supports continued growth and adapts to market changes

• Sustainability:
  Reduced transport redundancies contributed to a smaller environmental footprint across the logistics network

Are you planning a strategic redesign project or do you have questions or comments on this topic? Please do not hesitate to contact us!