Challenge
A Private Equity partner of Synergetics requested Due Diligence support on a motorcycle apparel company, with the purpose of using it as a platform for growth and with a focus on e-commerce. The initial hypothesis was to prove that margins could be enhanced by decreasing inventory levels with increased inventory turns, while concurrently lowering freight costs.
Through a collaborative Due Diligence effort, findings substantiated significant margin improvement opportunities and a solid foundation for growth. The Private Equity firm moved quickly to acquire this company, engaging Synergetics to coordinate all development efforts through a Project Management Office (PMO).
Key development objectives focused on an M&A plan to:
- Develop and implement a store level stocking and replenishment model while rightsizing inventory
- Define and implement a distribution footprint and inventory model targeted at eliminating several distribution centers
- Optimize freight and inventory turns
Solution
Synergetics continued to support this company from an implementation standpoint, focusing on these key areas:
- Developed and installed detailed warehouse layouts and processes to receive/put away/pick/pack/ship
- Adjusted their warehouse management system for improved slotting and inventory turns
- Installed bar code systems
- Re-bid freight lanes for new volumes in-network
- Closed two satellite warehouses
- Developed store level merchandising models and coordinated replenishment tools
- Developed and installed supply chain replenishment tools for improved inbound freight planning and in-stock performance
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