Network opportunity assessment looking into radial optimisation and inventory reduction with a reduced network

interior building shot Textured Image

Physical logistics | Fashion & General Merchandise Retail

Business targets

To look at the current radial distribution network and provide an implementable fixed routing schedule using the nearest / appropriate depot.

  • To reduce inventory by de-duplicating SKUs (less stocking / supply points) and implement group stock optimisation.

Our approach

  • Site visits and workshop sessions with key supply chain and logistics team to understand product flows, volumes, operational challenges & planned. business changes. Final project brief and deliverables agreed.
  • Data validation and business understanding post data receipt to ensure interpretation of data is correct.
  • Data analysis to interpret opportunities.
  • High level modelling using Paragon to quantify costs and benefits.


  • Radial Transport Optimisation (Phase 1): Implement fixed routing schedule with discrete service areas from depots – Operating benefit c. £4m-6m pa.
  • Inventory Reduction / Reduced Network: Centralisation of slow-moving SKUs to single DC and stock optimisation. Final benefit once fully implemented c. £40m – £50m in working capital reduction. Opex Benefit of £1m to £2m pa from network rationalisation.

£4m-6m p.a. Operating benefit

£40m - £50m working capital reduction

£1m to £2m Opex Benefit p.a.

from network rationalisation

Related services

Network design
Inventory management
Transport design