Company ABC (name removed for privacy reasons) is a luxury fashion retailer in the South African market that has 160 years of retail legacy. The business required a turnaround strategy. Company ABC decided to relaunch in the South African market via an e-commerce platform. The initial category focused on the beauty market, with a specific focus on skincare, colour cosmetics, fragrance and beauty accessories. During the implementation of the supply chain function for the e-commerce business, Company ABC met several challenges.
These challenges included, but was not limited to:
- Establishing product supplier agreements
- Identifying and establishing agreements with logistics service providers
- Establishing theoperating model with regards to procurement and
- Suppliers were reluctant to enter into drop-shipment arrangements (required min order quantities)
- Consolidation of orders proved to be challenging
- Investigating a hybrid model of replenishment on smaller quantities
- Investigating a hub environment to consolidate and ship from. Where do we place hubs? Will I keep stock here or merely use it as a throughput site? Can we hire a hub on an on-demand basis (as-and-when needed). We need assistance in selecting a 3PL
MetaPerformance was asked to put a proposal forward for the design and implementation of the supply chain operating model, which would include:
- Governance policies and structures and performance metrics,
- Setting up agreements with supply chain business partners including product suppliers and inbound and outbound fulfilment service providers.
- To launch the Company ABC online store.
- Leading up to the launch, implement a supply chain operating model that would cater specifically for the needs of Company ABC (e.g. last-mile delivery).