Case study · Retail
Operating and management model for the retail value chain
Operating and management model for a €900m retail company with more than 3,300 employees: 17,000 hours saved per year and a +1.5% EBITDA improvement.
- Company size
- More than 3,300 employees
- Revenue
- €900m
- Project scope
- Entire retail value chain
Starting point
The operational challenge
The challenge was to define an operating and management model spanning the company’s entire value chain: from procurement and logistics to replenishment and store operations, together with productivity, workforce management and commercial execution.
- Cover the complete flow from suppliers and procurement to points of sale.
- Define store operating models and productivity models.
- Include workforce-management indicators such as absenteeism and turnover.
- Integrate commercial-execution audits and the logistics operating model.
Solution delivered
Our intervention
The project defined the end-to-end operating and management model, connecting procurement, logistics and store operations with productivity models, workforce indicators and commercial-execution monitoring.
- Definition of the procurement model, including forecasting, OTIF, purchase and replenishment orders, stock and sales.
- Definition of the logistics operating model, including warehouse status, shrinkage or stockout risk, and demand fulfilment.
- Definition of store operating models and productivity models.
- Definition of absenteeism and turnover indicators and commercial-execution audits.
- Implementation of a BI tool to visualise and monitor the model’s indicators.
Value chain
One operating model connecting the entire supply chain
The planning and management layer was connected to procurement, logistics and replenishment to govern the complete flow through to the points of sale.
Procurement department
Forecast accuracy
Purchase order
Suppliers
Procurement
- OTIF — supplier analysis
Replenishment order
Warehouse
Logistics
- Warehouse status
- Shrinkage or stockout risk
- Demand fulfilment
Stock and sales
Points of sale
Replenishment
- Availability
- Inventory alerts
- Cycle counts
Impact achieved
Operational results
- A single source of truth for the entire organisation
- One data source
- Shared criteria across departments
- Alignment
- Time saved in data search and processing
- 17,000 h/year
- Rapid correction of indicator deviations
- Immediate action
- EBITDA improvement
- +1.5%
The organisation moved to a single source of truth, with everyone working from the same data and better alignment between departments. Removing data search and processing tasks saved 17,000 hours per year.
The BI tool and shared indicators enabled immediate corrective action.
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