To define the ‘large product’ logistics vision for a major digital retailer

long exposure shot on bridge Textured Image

Cost to serve, Physical logistics | Fashion & General Merchandise Retail

Business targets

Define the ‘large product’ logistics vision including a review of the use and layout of the large product NDC, ‘profit to serve’ SKU modelling, opportunities for improvement and an assessment of the changing ‘Two Person’ delivery market.

  • To find a future use for the large product NDC by reviewing the ‘contribution. cube’ (profit to serve) of the stored product range versus drop ship.
  • To define the optimal layout and flows for the site.
  • To identify continuous improvement opportunities to reduce operating cost.
  • To provide a market assessment with latest customer proposition trends in ‘Two Person’ delivery.

Our approach

  • Project kick off workshop with clear scope of works, deliverables and timeline agreed.
  • Detailed datasets capture to understand changes in Two Person logistics volumes & cube.
  • End-to-end process walk of warehouse operations to understand current processes and site layout.
  • Collaborative development of a contribution cube / profit to serve tool to. understand which products at SKU level do not generate profit and should be moved to a drop ship model.
  • Redesign of the current layout and flows to optimise the use of the site and generate further profit.
  • Mapping of continuous improvement opportunities, framed by value and ease of access.


  • £0.5m cost avoidance by changing sourcing behaviour / order placement frequency.
  • Up to £1.2m annualised savings from continuous improvement opportunities (x15).
  • Profit to serve model identified 600 out of 5,900 SKUs for delisting or channel switch, saving at least £0.2m annually.

10-15% Annualised Opex Savings

Related services

Strategic insight
Cost to serve analysis
Facility design
Benchmarking & audit
Operations improvement