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SCALA CASE STUDY

Supply Chain Network Strategy

New “Disrupter” – Direct to consumer Grocery Retailer

Background & Brief

The client, a new start-up and rapidly growing business providing direct to consumer, on-demand and rapid delivery of a range of groceries. SCALA were engaged to provide external, independent and agile expertise to review and recommend future supply options ranging from a supplier network similar to the existing model or move to a more dedicated regional/national logistics network in the future.

Project Approach

  • Gain understanding of current business and growth projections
  • Visit micro-fulfilment centre to understand current processes (sku range, stock holding, replenishment etc..)
  • Assessment of existing supplier model and future capabilities
  • Develop future ‘what if’ supply chain strategies
  • Project 3rd party service and resource requirements
  • Search market and identify potential supply chain/logistics partners
  • Assess responses and short-list partners
  • Visit short-list suppliers with client
  • Collate Findings & Conclusions summarising the pros and cons for each scenario and supplier

    • Benefits & Results

    Recommendations were produced for the Company’s Management Board outlining the implications, risks and costs of changing the from the existing supply and replenishment model to a supply chain model involving logistics providers.

    Final Outcome

    Having fully understood the pros and cons and cost implications of changing the existing model, the business has decided to remain with the existing wholesale supplier distributing to micro-fulfilment centres for the immediate future.
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